The price of gold (XAUUSD) turned upward in early trading on Wednesday (February 26, 2025) following a significant drop caused by profit-taking activities on Tuesday.<\/p>\n
The highest daily level for gold yesterday was $2,953.70 per troy ounce, which then plummeted to a low of $2,888.11 per troy ounce. This indicates a fluctuation of more than $65, or 650 pips, before the close on Tuesday at $2,914.58 per troy ounce.<\/p>\n
At the beginning of trading this morning, gold has recovered to $2,926.02 per troy ounce, marking an increase of over $11. This sharp increase is significant given that only two hours have passed in Wednesday\u2019s trading, a period typically characterized by minimal movement.<\/p>\n
Gold is still benefiting from a positive sentiment associated with broader trade war risks and signs of economic slowdown. Therefore, the drop in gold prices yesterday was primarily due to profit-taking.<\/p>\n
The trade war may escalate further in the near future after U.S. President Donald Trump announced that the 25% import tariffs on Canada and Mexico will remain in effect next week. Furthermore, tariffs on imported steel and aluminum from all countries will also be enforced.<\/p>\n
Trump’s statements have prompted the European Union to prepare a list of American products that will be subjected to import tariffs.<\/p>\n
Meanwhile, indications of an economic slowdown in the U.S. are becoming increasingly apparent. After S&P Global reported that the U.S. services sector contracted for the first time in over two years, the Conference Board reported a sharp drop in consumer sentiment this month.<\/p>\n
The consumer sentiment index was reported at 98.3, significantly down from last month\u2019s 104.1. A figure below 100 indicates that consumers in the U.S. are pessimistic about the economy, which could signal a reduction in spending. This, in turn, would likely contribute to an economic slowdown, resulting in an increased allure for gold as a safe haven.<\/p>\n
On the other hand, these various conditions are putting pressure on stock indices. The Nasdaq dropped by 232 index points in yesterday’s trading session. It has now declined for five consecutive days with a total decrease of 1,029 index points.<\/p>\n
Oil prices are also negatively impacted by the signs of an economic slowdown in the U.S., as there are concerns about declining demand. On Tuesday, oil prices fell by $1.81 to $69.08 per barrel, marking a two-month low.<\/p>\n","protected":false},"excerpt":{"rendered":"
The price of gold (XAUUSD) turned upward in early trading on Wednesday (February 26, 2025) following a significant drop caused by profit-taking activities on Tuesday. The highest daily level for gold yesterday was $2,953.70 per troy ounce, which then plummeted to a low of $2,888.11 per troy ounce. This indicates a fluctuation of more than […]<\/p>\n","protected":false},"author":4,"featured_media":43009,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[142,5173],"tags":[5175,5178,5168],"class_list":["post-43010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-trading-analysis","tag-cls10","tag-nq","tag-xauusd"],"yoast_head":"\n