Gold price recovery: Steadying into risk-off sentiment and trade tariff concerns
The gold price bounced back from its early slide as investors seek safety in the precious metal amid global uncertainty. The price climbed close to the $2,800 mark. Fears over US President Trump’s new trade tariffs on Canada, Mexico, and China have continued to fuel concerns of inflation and a slowing economy, further supporting the appeal of gold as a hedge. However, a strengthening US Dollar, fueled by speculation that the Federal Reserve may delay rate cuts, will continue to cap the upside potential for gold. As traders wait for key US economic data, particularly the ISM Manufacturing PMI, gold’s next moves will depend on whether it can maintain its momentum past the $2,800 level. KEY LOOKOUTS • New tariffs on Canada, Mexico, and China could increase inflation, driving more investors towards gold as a safe-haven asset. • The advance in the USD can put a top on gold upside, with continued strength in greenback through anticipation of further rate cuts from the Fed. • The next important resistance on gold prices would come at around $2,800. On breaking down, further fall will come into play, with a first significant support near $2,772. • US ISM Manufacturing PMI, coming this week, would be of extreme importance, since the numbers coming out from that might set direction for gold also. Gold prices are moving through a tough environment at the moment, as concerns over increasing inflation and the economic impact of US President Trump’s new trade tariffs on China, Canada, and Mexico underpin them. The tariffs have increased the apprehension of the slowdown in the economy, thereby making gold a safe haven to invest in. However, the strengthening US Dollar, which is gaining on expectations of delayed interest rate cuts by the Federal Reserve, may cap gold’s further upside. The traders are also keeping a close eye on key support levels around $2,772 and resistance near $2,800 as they await the release of important US economic data, including the ISM Manufacturing PMI, to determine gold’s near-term direction. Gold prices are recovering, driven by concerns over Trump’s trade tariffs and rising inflation, which bolster its safe-haven appeal. However, a strong US Dollar and upcoming US economic data, particularly the ISM PMI, could limit further gains. Traders are watching key levels around $2,800 for signs of continued bullish momentum. • Gold has climbed back toward $2,800 after an intraday dip, supported by risk-off sentiment and concerns over economic fallout. • New tariffs on China, Canada, and Mexico increase inflationary pressures, making gold more attractive as a hedge against inflation. • The USD continues to rise, supported by the expectation that the Federal Reserve may delay interest rate cuts, which may cap the upside for gold. • Trade war fears and geopolitical tensions continue to fuel demand for gold, supporting its upward movement. • Gold is finding support around $2,772 and if broken below, this level will likely lead to another decline toward $2,755 and $2,720. • Gold faces an immediate resistance in the $2,790-$2,800 area, with a next major hurdle near the all-time high of $2,817. • Traders would be waiting for the US ISM Manufacturing PMI that will give an update on the economic health status and its impact on the direction of the gold price. Gold prices have recovered some lost ground lately, and are climbing back toward the $2,800 mark as market sentiment remains dominated by concerns over US President Trump’s new trade tariffs on China, Mexico, and Canada. The tariffs are feared to fuel inflation, which in turn fuels gold’s appeal as a hedge against potential economic fallout. The trade war concerns also curb the risk appetite of investors, pushing them to move towards the safe haven status offered by gold. However, while these factors remain in favor of gold, the strengthening US Dollar, which gained momentum due to speculations of the Federal Reserve delaying interest rate cuts, would cap the precious metal’s rally. XAU/USD Daily Price Chart Sources: TradingView Prepared by ELLYANA Key technical levels remain under close attention, and a support level that has been quite pivotal is at $2,772. If this support breaks, then gold may witness additional falls toward $2,755 or $2,720. Resistance may come in around $2,790-$2,800. This all-time high of $2,817 presents a formidable obstacle. This week, crucial US economic indicators will be announced, including the ISM Manufacturing PMI, with traders now awaiting more evidence regarding the near-term direction for the economy. It’s still a careful market, for any change in the macro can take gold both ways. TECHNICAL ANALYSIS Technical analysis on gold shows a few key points of support and resistance that are going to set the short-term price action of gold. Here, gold is testing the lower support level at $2,772, which has been the point of a lot of play in its price action. Breaking below this point could take the price further downwards to $2,755 or $2,720. On the upside, immediate resistance is $2,790-$2,800, and all-time high around $2,817 is a significant hurdle. Technical indicators such as moving averages and oscillators begin to suggest a continuation of the uptrend as long as gold can hold above its key support. Traders pay careful attention to these levels and wait for potential breaks or reversals. FORECAST Gold may continue its upward trend if geopolitical risks and trade tariff concerns continue to exist, as these will fuel demand for safe-haven assets. As the US Dollar remains strong, it may push gold into a resistance zone between $2,790 and $2,800, potentially leading to new highs if market uncertainty grows further. Moreover, any bad news about inflation or economic stability may further help gold to be a hedge again, and hence the uptrend stays alive. So if gold takes out the resistance level of $2,800 and sustains an upward course, the next stop may be the all-time high at around $2,817. On the flip side, if the US Dollar continues to rise as it expects that the Federal Reserve would delay its