XAU/USD outlook: Fresh safe haven demand lifts gold price to new record high

XAU/USD

Gold price posted new record high on Friday, following a probe through psychological $2800 barrier, in extension of Thursday’s 1.3% advance.

The bullion benefited from fresh safe haven demand on renewed tariff threats from President Trump that the US would impose 25% duty on imports from Canada and Mexico, while still considering tariffs on imports of goods from China.

Weaker than expected US economic growth in the last three months of 2024 and elevated inflation, also contribute to increased demand, along with rising demand for physical gold, mainly from the central banks.

Technical picture remains bullish on all larger timeframes and underpins the action, with clear break of $2800 trigger to open way towards projected targets at $2850, $2890 and $2946 and unmask psychological $3000 barrier, which I pointed as a target in my comments last year.

Gold is on track for a monthly gain of over 6% in January (the biggest monthly advance since March 2024) and would also register the fifth consecutive bullish weekly close.

However, $2800 marks significant resistance and accompanied by overbought conditions, may keep the price in extended and likely shallow consolidation, before larger bulls resume.

Former top at $2790 marks immediate support, followed by $2770 (5DMA) and $2758 (rising 10DMA) which should contain potential deeper dips.

Res: 2801; 2850; 2890; 2946.
Sup: 2790; 2785; 2770; 2758.

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