Why did the price of gold fall below its standard peak … and what are its expectations?

The price of gold attracted some sales at the beginning of a new week, which made him move away from the vicinity of historical peak, or its highest level since late October, according to the American FX Street platform.

Gold price

The price of gold has risen to hover around the $ 2786 area for the ounce that it touched on Friday at the time of the US dollar a modest recovery after its worst week recorded since November 2023 and it was found that it was a major factor that undermines the commodity.
However, the basic background appears to be in favor of supporting the metal and supports the chances of some purchases when declining at lower levels.

Global risks and gold

Global moves are experiencing a major threat, following US President Donald Trump’s decision to impose customs duties on all imports from Colombia, which raised the fears of the trade war.
Also read: Why is gold a good safe haven yet despite its high prices?
Moreover, the possibility of lowering the US Federal Reserve for interest rates twice by the end of this year 2025, in addition to escaping to a safe haven that would lead to a new decrease in the returns of treasury bonds, and this in turn may prevent optimists in US dollars from putting large bets on it and helping in Reducing any concrete decline in the price of non -yield gold.

Gold pressure

The price of gold is under pressure due to a good recovery in the demand for the US dollar in what appears to be a limited negative condition.
The US dollar index, which tracks the green currency against a basket of currencies, increased by about 0.25%, amid renewed concerns about US President Donald Trump’s commercial policies, prompting some investors to sell gold.
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Trump ordered his administration to impose 25% emergency customs duties on all commodities coming from Colombia after the Colombian government refused to allow two American military planes carrying migrants deported to land in the country.
Trump warned that customs duties would rise to 50% by next week if the country in Latin America refuses to comply with his immigration policies, which reduced investor appetite for the most dangerous assets.

Customs duties

Moreover, the Wall Street Journal reported that there is an increasing momentum among Trump’s consultants to impose customs duties by 25% on Mexico and Canada from February 1 without waiting for negotiations or talks.

Benefit and gold trends

Meanwhile, Trump said last Thursday that he would demand the reduction of interest rates immediately, which raised the bets that the Federal Reserve will reduce the costs of borrowing more in 2025, which may lead to a decrease in the returns of treasury bonds, and this may act as windy winds and help in the limit From the landmark of gold.

Gold prices expectations

Any later decrease is likely to occur below the $ 27502748 region an ounce of support near the $ 2736 region before the strong resistance point at $ 2725.
On the other hand, the height of the metal may make it exceed the barrier of 2772-2773 dollars, which would pave the way for a return to the historical peak at the level of $ 2790 that was touched in October, which may lead the metal to rise to exceed the level of $ 2,800.