Gold Breakout? AUD Slammed

The following gold price chart, which was referenced last Friday, shows that the symmetrical triangle pattern has reached its final stage. The next close has the potential to confirm a breakout upward on this huge timeframe.

One of the recent developments that has kept the gold price so hot has been Trump's speech yesterday morning at Mar-a-Lago. He had strong words for the Federal Reserve, saying that they are making the beginning of his presidency as hard as possible by being restrictive on interest rates. Trump stated that he thinks rates are way too high and mentioned that he is inheriting a bad economy from the last administration. Although the President of the United States has no power over the Federal Reserve, public criticism could cause people to see their policies as problematic and be leveraged in getting them to lower rates.

Tonight's news (12:30AM AEDT) could produce more leverage to cut rates as well. If the U.S. job numbers come out worse than expected, this would make it very hard for the Fed to find an excuse not to cut.

The Australian Dollar - most often measured against the U.S. Dollar - has also been smacked down again. It had a slight bounce off a major support, purely based on a rumour from the Washington Post that Trump would do very minimal tariffs. Trump posted online in response that he said no such thing and accused the Washington Post of using made-up sources, which they listed as ‘anonymous’. Since then, AUD/USD has been rejected back down and is hovering around its lowest point since 2022. If it falls through, it could enter virtual freefall. The support level below the current one would be one from the 2020 crash, and that is scary seeing that most other markets have been performing really well.

Gold, especially in AUD terms, may be in for a very big night.