XAUUSD

While XAU/USD is trading near the $3000 level, geopolitical tensions and Trump's protectionist trade policies are supporting the precious metal by increasing safe-haven demand. Although $3000 appears to be a psychological support level, buying zones at $2950 and $2920 are limiting corrective movements. The FOMC Minutes to be released today in the US could be the most significant catalyst for increasing volatility in gold prices, as high inflation pressures may lead to sharp sell-offs. The continuation of gold purchases by central banks and the increase in physical demand from China ensure the maintenance of an upward trend in the medium term despite short-term corrections.