Gold prices opened Monday’s trading with gains of 1.1%, heading towards a fourth consecutive session of gains.
Gold is currently trading near the first weekly resistance level of $5,197. It should be noted that surpassing this level could help prices resume their upward trend, which could extend towards the second weekly resistance level of $5286.
If gold fails to break through the first weekly resistance level at $5197, it may test the weekly pivot point depicted at $5020. Breaking below the pivot point is a negative signal that may reinforce selling pressure, opening the way for prices to decline towards support levels of $4931 and $4753.
From a fundamental perspective, the U.S. Supreme Court on Friday struck down a broad set of tariffs imposed by President Donald Trump in a surprise ruling that reshapes the direction of U.S. trade policy.
The decision comes amid rising tensions between Washington and Tehran, injecting additional uncertainty into both the economic and geopolitical outlook.
In the same vein, Trump responded to the Supreme Court’s decision by announcing a temporary 15% global levies invoked under a 1974 trade act.
An official White House communication had initially stated that the tariffs would be placed at 10% as of Tuesday, but Trump later raised that figure over the weekend.
At the same time, this will be a “crucial week” for Iran, as Trump’s deadline implies a decision will soon be made on whether to launch a strike on the country by around March 1, analysts at Vital Knowledge said in a note.
On Thursday, Washington and Tehran will hold a third round of nuclear talks in Geneva, according to Oman’s foreign minister.
An increase in the U.S. military presence in the Middle East has underscored fears over fresh violence in the region. Trump has called on Iran to quickly make a deal over its nuclear program, warning that “really bad things will happen” if it does not.
On the economic data front, U.S. inflation data will take center stage, with the annual Producer Price Index projected to ease to 2.9% in January from 3% in December. On a monthly basis, prices are expected to decline by 0.3%.