Gold Price News: Gold falls to USD 2,560 under the influence of global uncertainties and US politics

The gold price today stands at USD 2,560 per troy ounce, once again showing a slight downward trend. Despite global uncertainties such as geopolitical tensions and political upheaval in the USA, gold is losing value. A key influencing factor is the latest economic policy of US President-elect Donald Trump, which is strengthening confidence in the US economy and boosting the dollar. As gold traditionally serves as a hedge against uncertainty, a stronger US economy and a rising dollar reduces its attractiveness for investors. This strengthens alternative forms of investment in the short term and weakens the demand for gold as a safe investment.

Donald Trump is further expanding his administration with new nominations. Congressman Matt Gaetz has been proposed as Attorney General and, according to Trump, should restore Americans' trust in the Department of Justice and put an end to the “partisan use of the justice system”. In addition, Senator Marco Rubio is to serve as Secretary of State, which could speak for a tougher US foreign policy towards adversaries such as China and Russia. These clear political positions could strengthen the US economy, which in turn could lead to a further devaluation of the gold price.

In view of Israel's ongoing military operations in the Middle East, EU foreign policy chief Josep Borrell is considering suspending the regular political dialog with Israel. Should this proposal be accepted by all 27 EU states, it would send a clear signal against Israel's recent military operations and could increase geopolitical uncertainties. Nevertheless, the impact on the gold price has so far remained limited, as investors are holding off buying gold in view of US economic policy and the prospect of stable US interest rates.

A US court has allowed a lawsuit by antitrust regulators that could force Meta to spin off Instagram and WhatsApp. Such antitrust measures against tech giants such as Meta, Amazon and Google could influence the investment climate in the US in the long term, which in turn could increase demand for gold. In the short term, however, the effect will remain small, as investors are banking on structural economic reforms by the Trump administration and are deferring gold as a hedge.

Ukraine continues to face considerable pressure in the east of the country as Russia makes territorial gains and the Ukrainian defense lines in the Donetsk region come under increasing pressure. At the same time, the European Union and its member states are increasing their military support for Ukraine and for the first time are using funds from the regular EU budget for arms purchases. Despite these developments and the geopolitical tension, the gold price is falling as the expectation of stable US interest rates and economic stability under Trump dominates the market outlook.

From a technical chart perspective, the gold price could remain in a downward trend. The current support level is USD 2,550. If the price continues to fall, the USD 2,530 mark could be reached. A break of this zone could push the gold price down to USD 2,500. Only a sustained rise above the USD 2,600 mark could signal a reversal.

Analysts expect the markets to continue to be influenced by the Trump administration. If the Federal Reserve leaves its interest rate policy unchanged and does not announce any further cuts, the dollar could strengthen. This would continue the pressure on the gold price. In addition to geopolitical developments, the reactions of the Fed and the actual economic policy direction of the Trump administration will therefore be decisive in the coming weeks.