Gold prices have regained strength after a correction earlier this week. This increase is driven by geopolitical sentiment and the prospects of universal import tariffs being considered by President-elect Donald Trump.
According to Trading Economics, gold is currently priced at $2,638 per troy ounce, up 0.16% over the last 24 hours.
Analyst Andy Nugraha from Dupoin Indonesia observes that technically, based on a combination of candlestick patterns and moving average indicators, a bullish trend has been formed again.
"Price movement projections for today indicate potential gains up to $2,645. However, if the price reverses, the nearest downside target would be $2,622," he wrote in his research on Tuesday (January 7).
He notes that moving average indicators are signaling a positive trend, indicating that buyers are still dominating the gold market. However, this condition remains vulnerable to fluctuations due to the dynamics of geopolitical news and upcoming economic data releases.
Gold market sentiment is influenced by various important news. One of the main drivers is a report from the Washington Post, which mentions that President-elect Donald Trump is considering universal tariffs on essential imports.
"This policy could increase global economic uncertainty and trigger a surge in demand for safe-haven assets like gold," he assessed.
In addition, Italian Prime Minister Giorgia Meloni attracted attention after deciding to meet with Donald Trump independently, showing a split in the European Union's unified stance. Meanwhile, Canadian Prime Minister Justin Trudeau's resignation added political dynamics impacting the market.
The gold market is also awaiting the release of US Nonfarm Payrolls (NFP) data on Friday. This data is a key reference for the Federal Reserve in determining the direction of its monetary policy.
Currently, the CME FedWatch Tool shows a low probability (10%) of a 25 basis point (bps) rate cut in January. However, uncertainty remains high, especially leading up to Donald Trump's inauguration on January 20.
The yield on US 10-year bonds, which reached 4.639% last week, dropped to 4.62% on Monday. This drop in yields provides some support for gold prices. However, expectations about the Fed's interest rate policy, which remains data-dependent, are putting short-term pressure on gold movements.
"Overall, gold is still showing a solid bullish trend, supported by geopolitical uncertainty and President-elect Donald Trump's planned global tariff policies," he concluded.
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