Spot Gold Prices Extend Rally, Eyeing Further Gains
The precious yellow metal paired back some losses seen in the previous session after reports indicated that a ceasefire between Israel and Lebanon was imminent, reducing demand for safe-haven assets.
Earlier in the week, President-elect Trump's surprise market of tariff plans included a 10% duty on Chinese imports and 25% on goods from Mexico and Canada.
Mexican President Claudia Sheinbaum Pardo suggested that the US tariffs could prompt retaliation, while Canada's Prime Minister Justin Trudeau emphasised the need for cooperation.
Additionally, traders digested the release of the Fed meeting minutes, which revealed a divided stance on how much further the central bank may need to cut interest rates.
The report indicated that while future cuts are anticipated, they will occur "gradually." The US Dollar (DXY) is steady at 106.85.
Technically, the Relative Strength Index (RSI) is mixed. Similarly, the Moving Average Convergence Divergence (MACD) also reflects a mixed stance, while the Average Directional Index (ADX) suggests a ranging market.
Given the conflicting signals, further whipsaw movement is likely as the market tries to establish a clear bullish trend.
A break above $2,648-49 could strengthen a rally towards $2,679-82. Reassess at that point.
Daily Chart Spot Gold
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