Peter Smith
Gold (XAU/USD) continues its bullish momentum, gaining over 1.20% after Trump proposed a 10% tariff on Chinese goods. Analysts see potential for Gold to hit $2,800 or beyond.
Gold (XAU/USD) Rallies Following Trump’s Tariff Announcement
Gold (XAU/USD) extended its upward trajectory this week, fueled by US President Donald Trump’s latest comments on tariffs targeting Chinese goods. On Tuesday, the precious metal gained over 1.20%, driven by the announcement of a new 10% levy. The proposed tariffs have reignited investor interest in Gold as a hedge against potential economic turbulence.
Investors are also weighing the broader implications of the Trump administration’s policies. While the tariff-driven inflationary pressures could support Gold, they may also constrain the Federal Reserve’s ability to ease monetary policy. Historically, higher borrowing costs have posed challenges for Gold prices due to their inverse relationship.
US Inflation Data Could Alter Gold’s Trajectory
Despite Gold’s impressive rally, the trend could reverse depending on upcoming US inflation data. Analysts warn that a resurgence in inflationary pressures may prompt traders to take profits, potentially cooling the bullish momentum.
Profit-taking could drive Gold prices back toward $2,700 if inflation rises significantly. Technical analysis highlights key support levels, including the downward-sloping trendline from last week’s broken pennant pattern at $2,668. If further declines occur, the 55-day and 100-day Simple Moving Averages (SMAs), converging near $2,649, could serve as additional support zones.
Gold (XAU/USD) Targets $2,800 Resistance Level
With Gold currently trading near $2,790, the metal is approaching a critical resistance point. A move above $2,790 would pave the way for a fresh all-time high. While some analysts forecast Gold reaching $3,000, $2,800 remains a more immediate and attainable target.
The bullish sentiment around Gold reflects growing uncertainty in global markets. As inflation concerns and geopolitical tensions persist, the metal remains a preferred safe-haven asset for investors.
Technical Outlook: Key Levels to Watch for Gold
- Upside Targets: Gold is eyeing $2,790 as the next major resistance, with analysts projecting a move toward $3,000 if momentum holds.
- Support Levels: In case of a pullback, the first support lies at $2,700, followed by $2,668. Further declines may test the 55-day and 100-day SMAs near $2,649.
As the market reacts to Trump's tariff announcement and upcoming inflation data, Gold's path forward remains dynamic. Traders should stay vigilant, particularly around key technical levels and macroeconomic developments.
Peter Smith
