gold prices are experiencing a moment of recovery after a significant decline from their recent peak, which was just below the historical high of $2,790. Attention has shifted to the ongoing tariff discussions initiated by the U.S. administration, coupled with the anticipation of key economic data and forthcoming monetary policy announcements from the Federal Reserve.
Despite a general flight toward the safety of the U.S. dollar amidst escalating trade concerns and a sell-off in global stock markets, gold continues to attract interest. Recent reports highlighting an increase in U.S. Treasury bond yields, attributed to a halt on federal grants, are contributing to a bearish environment for gold . U.S. Treasury Secretary has been vocal about the need for universal tariffs on imports, with initial rates proposed at 2.5% and set to increase over time. The administration also targets specific sectors, including technology and manufacturing, with President Trump expressing intentions for even steeper tariffs.
The impact of these tariff threats is dampening risk sentiment in the markets, as evidenced by the negative reaction within Asian markets – particularly influenced by advancements in China’s artificial intelligence sector that have posed a challenge to major players like Nvidia .
Looking forward, traders are attentive to upcoming economic indicators such as U.S. Durable Goods Orders and Consumer Confidence, which are expected to influence market movements. The ongoing tariff discussions and their impact on Wall Street are likely to affect both the U.S. dollar and gold prices. Additionally, the Federal Reserve’s monetary policy meeting adds another layer of uncertainty, with significant decisions imminent.
From a technical perspective, the outlook for gold appears cautiously optimistic, although recent price action raises some concerns for buyers. The gold price has struggled to close above the target set at $2,785, indicating a potential resistance point. Nonetheless, the Relative Strength Index remains above the neutral midline, suggesting some bullish momentum. A daily close above the previous record high could shift sentiments, targeting the $2,850 mark, whereas immediate support is identified at $2,731. Further declines could test the $2,700 level and the 21-day Simple Moving Average at $2,691.
