XAUUSD H1 Idea

Gold Prices—Is $3,000 Within Reach as Inflation Pressures Continues?


- Last week, gold settled at $2,882.48, rising by $21.23.

- President Donald Trump’s executive order introducing reciprocal tariffs has heightened market uncertainty, reinforcing gold’s appeal as a safe-haven asset. At the same time, stubborn inflation remains a key driver; the Consumer Price Index (CPI) climbed 0.5% in January, while the Producer Price Index (PPI) rose 3.5% year-over-year. These readings indicate inflationary pressures that may keep the Federal Reserve cautious about cutting interest rates. However, traders are closely watching the upcoming Personal Consumption Expenditures (PCE) index—if it signals cooling inflation, it could slow gold’s rally.

- From a technical perspective, the uptrend remains intact, with gold maintaining its multi-week bullish momentum. A breakout above $2,942.78 would signal a continuation of the rally, potentially paving the way toward the $3,000 psychological level. The nearest support sits around $2,739.81, a critical short-term pivot that could provide stability if the market pulls back. However, gold is now in the midst of a seven-week rally, making it vulnerable to a potential bearish reversal. A failure to hold recent gains could trigger a corrective move, especially if key resistance levels prove too strong.

- Treasury yields declined, temporarily easing fears of an overheated economy. However, yields remain elevated compared to earlier in the year, signaling ongoing market uncertainty about the Fed’s next steps.

- Looking ahead, gold’s trajectory will be heavily influenced by economic data and Federal Reserve policy shifts. If inflation remains stubborn and trade tensions escalate, gold could continue its ascent toward new highs. Any signs of easing price pressures or a shift in Fed rhetoric could lead to a temporary pullback.