Gold (XAU/USD) is consolidating around $2,900, eyeing its all-time high of $2,956. Safe-haven demand persists amid potential easing of US car import tariffs for Canada and Mexico, though reciprocal tariffs remain.
The European Central Bank (ECB) is poised to announce its interest rate decision, with expectations of a 25 bps rate cut. EU leaders will also convene to discuss defense spending and further aid to Ukraine.
Traders are now pricing in multiple Federal Reserve (Fed) rate cuts for 2025, driven by deteriorating US economic data fueling recession concerns. This shift supports Gold, with markets anticipating at least two rate cuts this year.
Key levels to watch include the daily Pivot Point at $2,914 and the daily R1 resistance at $2,934. Downside support lies at $2,899, coinciding with the $2,900 psychological level.