Tide turns in favor of GOLD buyers on rising tariff tensions
Gold rises for the third straight day and looks to book weekly gains on Friday.
The US Dollar rebounds sharply as President Trump announces new tariffs and fuels trade war fears.
Gold price regains 50-day SMA as the daily RSI climbs back above the midline.
Gold price remains on track for weekly gains, extending its recovery into a third consecutive day on Friday. Traders keep an eye on trade developments amid a data-quiet US calendar ahead.
The safe-haven flows resurface in Asian trading on Friday as markets turn cautious following US President Trump’s announcements on the tariff front.To begin with, Trump threatened a 35% tariff rate for goods imported from Canada, starting August 1.He also announced more tariffs and said he planned to impose blanket levies of 15% or 20% on most trade partners.
Late Thursday, the President said the EU could receive a letter on tariff rates by Friday, squashing the optimism over the progress of trade talks between Washington and the old continent.Signs of instability in Trump’s trade policies sag investors’ confidence yet again, reviving the haven demand for the USD and Gold price.
However, Gold buyers remain undeterred by the USD resurgence as traders also remain unnerved ahead of next week’s US CPI data release, which could offer fresh hints on the scope and timing of the interest rate cuts by the Fed.
In the absence of any top-tier US economic data, markets will continue monitoring trade headlines for any retaliatory tariffs from the US’ major trading partners.The end-of-the-week flows and pre-US CPI repositioning could also drive the Gold price action.
Daily technical analysis
Gold price is building on the bounce from the critical 38.2% Fibo level of the April record rally at $3,297 early Friday, recapturing the 50-day SMA at $3,325.
The 14-day RSI has also pierced above the midline, currently near 50.50, indicating a positive shift in sentiment around the bright metal.
Buyers need a daily candlestick closing above the 50-day SMA at $3,323 to take on the 21-day SMA at $3,344.
Further up, the 23.6% Fibo level of the same advance at $3,377 could offer stiff resistance to Gold buyers.
However, a failure to settle Friday above the 50-day SMA will likely reinforce selling pressure, sending Gold price back to test the 38.2% Fibo support at $3,297.
Acceptance under that level could accelerate declines toward the monthly low of $3,248.
Tide turns in favor of GOLD buyers on rising tariff tensions
Gold price remains on track for weekly gains, extending its recovery into a third consecutive day on Friday. Traders keep an eye on trade developments amid a data-quiet US calendar ahead.
The safe-haven flows resurface in Asian trading on Friday as markets turn cautious following US President Trump’s announcements on the tariff front.To begin with, Trump threatened a 35% tariff rate for goods imported from Canada, starting August 1.He also announced more tariffs and said he planned to impose blanket levies of 15% or 20% on most trade partners.
Late Thursday, the President said the EU could receive a letter on tariff rates by Friday, squashing the optimism over the progress of trade talks between Washington and the old continent.Signs of instability in Trump’s trade policies sag investors’ confidence yet again, reviving the haven demand for the USD and Gold price.
However, Gold buyers remain undeterred by the USD resurgence as traders also remain unnerved ahead of next week’s US CPI data release, which could offer fresh hints on the scope and timing of the interest rate cuts by the Fed.
In the absence of any top-tier US economic data, markets will continue monitoring trade headlines for any retaliatory tariffs from the US’ major trading partners.The end-of-the-week flows and pre-US CPI repositioning could also drive the Gold price action.
Daily technical analysis
Gold price is building on the bounce from the critical 38.2% Fibo level of the April record rally at $3,297 early Friday, recapturing the 50-day SMA at $3,325.
The 14-day RSI has also pierced above the midline, currently near 50.50, indicating a positive shift in sentiment around the bright metal.
Buyers need a daily candlestick closing above the 50-day SMA at $3,323 to take on the 21-day SMA at $3,344.
Further up, the 23.6% Fibo level of the same advance at $3,377 could offer stiff resistance to Gold buyers.
However, a failure to settle Friday above the 50-day SMA will likely reinforce selling pressure, sending Gold price back to test the 38.2% Fibo support at $3,297.
Acceptance under that level could accelerate declines toward the monthly low of $3,248.
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