Gold Shines Bright: Rally Nears All-Time High Amid Trump’s Trade Tariff Reversal
Gold prices skyrocketed this week as it rose to more than 2.50% on the back of US President Donald Trump’s unexpected comments that he may no longer impose tariffs on China after a phone call with Chinese President Xi Jinping. This shift, combined with plummeting US yields and equities rallying, puts gold back on its path to challenge its all-time high of $2,790, trading at $2,774. Further boosting market sentiment is the Bank of Japan hike in interest rates and anticipation of U.S. economic data releases, including readings for PMI and the Consumer Sentiment Index. $2,800 becomes the analysts’ next major level of resistance while some set the sights for higher levels around $3,000. Some downsides at supports are pegged at $2,721 and $2,709. KEY LOOKOUTS The fact that President Trump’s remarks of skipping tariffs on China have kept boosting gold has positioned the metal on the edge of nearing all-time highs near $2,790. • Declining US yields, triggered by the rate hike by the Bank of Japan and Trump’s comments on Federal Reserve policies, sustain the rally for gold. • Resistance for gold is at $2,790 and $2,800, while the support is at $2,721 and $2,709, which are critical levels for any buying and selling pressures by traders. • Traders await S&P Global PMI and Michigan Consumer Sentiment Index readings, with potential to influence gold prices depending on economic sentiment and market reactions. Gold continues its bullish run, gaining over 2.50% this week, fueled by US President Donald Trump’s surprising remarks suggesting he may avoid imposing tariffs on China after discussions with Chinese President Xi Jinping. This change in trade sentiment, coupled with plummeting US yields after the Bank of Japan’s rate hike, has pushed gold to within touching distance of its all-time high of $2,790, with analysts looking at $2,800 as the next key resistance level. Meanwhile, traders are cautious ahead of significant US economic data releases, including the S&P Global PMI and Michigan Consumer Sentiment Index, which could impact market sentiment and gold’s trajectory. Gold has risen over 2.50% this week, close to its all-time high of $2,790, after US President Donald Trump said he would avoid tariffs on China. Falling US yields and key data releases are also driving momentum. • Gold prices rose over 2.50% this week, approaching the all-time high of $2,790. • US President Donald Trump hinted at avoiding tariffs on China, boosting market optimism and supporting gold’s rally. • Declining US yields, influenced by the Bank of Japan’s rate hike and trade developments, add to gold’s bullish trend. • Gold faces resistance at $2,790 and $2,800, with $3,000 projected as a potential long-term target. • Support levels for gold are noted at $2,721 and $2,709, vital for traders monitoring downside risks. • Upcoming US PMI and Michigan Consumer Sentiment Index readings may sway market sentiment and impact gold’s movement. • Analysts are still positive and believe that gold has room for further upside with the market and economic environment being supportive. Gold prices have gained more than 2.50% this week after US President Donald Trump’s surprise remarks about possibly not levying tariffs on China following his phone call with Chinese President Xi Jinping. This change in trade sentiment has boosted investor confidence in gold as a safe haven, pushing it to within touching distance of its all-time high of $2,790. Falling US Treasury yields, driven by the Bank of Japan’s 25-basis-point rate hike, have also been supportive of gold’s upward momentum. At current prices of $2,774, traders are looking at resistance levels at $2,790 and $2,800, with some analysts projecting a possible climb to $3,000 in the long term. XAU/USD Daily Price Chart Source: TradingView Prepared By ELLYANA Gold also watched critical supports around $2,721 and $2,709, through which the subsequent action will unfold, if pullbacks occur for this precious metal. Other macro economic data slated to be reported will be a release of the S&P Global PMI along with the US’s Consumer Sentiment Index out of the Michigan. These announcements, combined with continued news surrounding Trump’s tariff policies and Federal Reserve expectations, could send gold prices in a big way over the next few days. With a combination of positive technical factors and fundamental drivers, gold seems to be set for further upside. TECHNICAL ANALYSIS XAU/USD remains very bullish as it approaches the all-time high of $2,790, with $2,800 being the next key resistance level. A move above this ceiling may trigger a rally towards $3,000, which analysts are beginning to foresee as well. On the downside, initial support comes in at $2,721, which corresponds to a double top from November and December, below that at $2,709, a deep low from October. A break below either could cause gold to retreat even more significantly to $2,680 levels, indicating a reversal. Momentum gauges, such as RSI, are above overbought levels, thus caution is due for new buyers, though sentiment remains positive due to strong drivers. FORECAST Gold price is expected to continue rising; analysts expect it to break past the all-time high of $2,790. A break past that level would result in $2,800 turning into a strong resistance area. If it breaks this level, a rally towards much-awaited $3,000 would be seen as a springboard. Supporting this bullish sentiment are the conditions of the market: falling US yields, dovish central bank expectations, and ongoing uncertainty about trade policies. Gold remains a first choice among safe-haven assets, and the upward trajectory might strengthen further if more global economic uncertainties or geopolitical tensions arise. Despite its bullish momentum, gold is still susceptible to downside risks. The immediate support levels for it stand at $2,721 and $2,709. A breakdown of these areas may trigger a sharper sell-off, and prices could easily be dragged back to $2,680 or lower. Overbought conditions, as shown by technical indicators such as RSI, also hint at a correction. More than expected US economic data or a hawkish turn in Federal Reserve policies could also undermine the appeal of gold,