As of January 23, 2025, gold prices have experienced a slight decline due to a strengthening U.S. dollar, following a near three-month peak reached the previous day. Spot gold is currently trading at $2,751.87 per ounce, down 0.1% from Wednesday's high of $2,763.43.
This modest pullback is largely attributed to technical factors and profit-taking, as the dollar's recovery has prompted some investors to book profits. Despite this, the overall sentiment for gold remains positive, with analysts suggesting that the undertone for gold is expected to be positive.
Market participants are closely monitoring U.S. President Donald Trump's proposed trade policies, including potential tariffs on imports from Mexico, Canada, China, and Europe. These policies could influence inflation and, consequently, the Federal Reserve's monetary policy decisions. The Federal Reserve is anticipated to maintain its benchmark interest rate in the upcoming meeting on January 28-29, 2025.
In the broader context, gold has been on an upward trajectory, breaking above the $2,720 level and initiating a rally toward the primary target of $3,000. Analysts suggest that a decisive break above $2,790 could pave the way for this target, with the potential for a long-term rally toward $3,200.