Gold (XAU/USD) enters the new trading week on uncertain footing, with investors closely watching Federal Reserve updates, economic indicators, and geopolitical developments for market direction. After dipping to $2,882, gold is struggling to reclaim the $2,900 resistance level, with technical indicators signaling potential momentum shifts.
Key Economic Events Impacting Gold Prices This Week
This week is packed with market-moving economic events that could drive volatility in gold prices:
- February 18:
- FOMC Member Waller’s speech – Could offer insights into the Federal Reserve’s stance on interest rate cuts.
- Empire State Manufacturing Index – Will provide an update on U.S. economic activity.
- February 19:
- FOMC Meeting Minutes – A key report that will shape expectations for future Fed policy decisions. If policymakers hint at a delay in rate cuts, gold could face downward pressure as the U.S. dollar strengthens.
- February 20:
- Unemployment Claims & Philly Fed Manufacturing Index – These labor market indicators could influence rate cut expectations. Higher-than-expected jobless claims may support gold, increasing demand for safe-haven assets.
- Crude Oil Inventory Data – Could impact inflation expectations, indirectly affecting gold’s appeal as an inflation hedge.
- February 21:
- Flash Manufacturing & Services PMI – Strong data could weigh on gold, while weaker-than-expected figures may drive demand for safe-haven assets.
- Existing Home Sales & University of Michigan Consumer Sentiment Report – A strong housing market and positive consumer sentiment may limit gold’s upside potential.
Gold Price Technical Analysis: Key Levels to Watch
Gold is currently consolidating above the key support level of $2,877, with a bullish trendline offering stability. However, resistance remains firm at $2,903, the 50-day EMA level.
- Immediate Resistance: $2,894
- Next Resistance: $2,908, followed by $2,937
- Immediate Support: $2,877
- Next Support: $2,864, then $2,848
If gold prices hold above $2,877, a retest of the $2,894 and $2,908 levels is likely. A break above $2,908 could push momentum toward $2,937. However, a drop below $2,877 may lead to a decline toward $2,864.
Final Outlook: What’s Next for Gold?
The gold market’s direction will depend on Federal Reserve signals and key economic data. A hawkish Fed stance could put downward pressure on gold, while weaker economic indicators may drive safe-haven demand, fueling a rally.
With heightened market volatility expected, traders should closely monitor the $2,877 support level for potential breakouts or breakdowns in the coming days.
