GOLD resumes upside on Trump’s fresh tariff threats
Gold price is back on bids early Thursday, following Wednesday’s brief pullback from near eight-day highs.
The US Dollar remains vulnerable amid increased Fed rate cut bets, US economic woes.
Technically, upside risks remain in place for Gold price, with eyes on a sustained move above $3,390.
Gold price is back on the bids early Thursday, resuming its recent recovery rally after a temporary pullback seen on Wednesday.
Amidst ongoing trade headlines and the wait for the announcements of the US Fed appointees to replace Fed Governor Adriana Kugler and Chairman Jerome Powell, Gold price looks forward to the mid-tier US Jobless Claims and preliminary second-quarter Unit Labor Cost data for fresh hints on the state of the US labor market.
The July labor data disappointment and a slowdown in the American services sector have already intensified concerns over the US economic prospects, doubling down on expectations that the Fed will lower interest rates in September.
This dovish narrative provides fresh support to Gold buyers, while they also capitalize on renewed haven demand due to the latest tariff threats from US President Donald Trump on its Asian trading partners.
Citing a White House official, a Japanese newspaper, Asahi, reported that Trump could impose an additional 15% tariff on all Japanese imports.
Meanwhile, Trump’s trade adviser, Peter Navarro, warned early Thursday of extra China tariffs over Russian oil imports.
This comes after the US president imposed an additional 25% tariff on goods from India on Wednesday, with the executive order mentioning that India directly or indirectly imported Russian oil.
Daily technical analysis
The short-term technical outlook for Gold price remains constructive amid a Bull Cross in play and a bullish daily RSI.
The leading indicator points higher above the midline, currently near 55, suggesting that additional upside remains in the offing.
Meanwhile, the 21-day closed above the 50-day SMA on Tuesday, confirming a Bull Cross.
If the buying momentum gathers strength, Gold price could see a sustained break above the rising trendline support-turned-resistance at $3,387, close to the eight-day high of $3,390.
The next healthy resistance levels are seen at the $3,400 threshold and the $3,440 static barrier, followed by the June 16 high of $3,453.
Alternatively, strong support is placed at the 21-day SMA and 50-day SMA confluence near $3,350. Acceptance below that level will unleash additional downside toward the $3,300 round figure. De
GOLD resumes upside on Trump’s fresh tariff threats
Gold price is back on the bids early Thursday, resuming its recent recovery rally after a temporary pullback seen on Wednesday.
Amidst ongoing trade headlines and the wait for the announcements of the US Fed appointees to replace Fed Governor Adriana Kugler and Chairman Jerome Powell, Gold price looks forward to the mid-tier US Jobless Claims and preliminary second-quarter Unit Labor Cost data for fresh hints on the state of the US labor market.
The July labor data disappointment and a slowdown in the American services sector have already intensified concerns over the US economic prospects, doubling down on expectations that the Fed will lower interest rates in September.
This dovish narrative provides fresh support to Gold buyers, while they also capitalize on renewed haven demand due to the latest tariff threats from US President Donald Trump on its Asian trading partners.
Citing a White House official, a Japanese newspaper, Asahi, reported that Trump could impose an additional 15% tariff on all Japanese imports.
Meanwhile, Trump’s trade adviser, Peter Navarro, warned early Thursday of extra China tariffs over Russian oil imports.
This comes after the US president imposed an additional 25% tariff on goods from India on Wednesday, with the executive order mentioning that India directly or indirectly imported Russian oil.
Daily technical analysis
The short-term technical outlook for Gold price remains constructive amid a Bull Cross in play and a bullish daily RSI.
The leading indicator points higher above the midline, currently near 55, suggesting that additional upside remains in the offing.
Meanwhile, the 21-day closed above the 50-day SMA on Tuesday, confirming a Bull Cross.
If the buying momentum gathers strength, Gold price could see a sustained break above the rising trendline support-turned-resistance at $3,387, close to the eight-day high of $3,390.
The next healthy resistance levels are seen at the $3,400 threshold and the $3,440 static barrier, followed by the June 16 high of $3,453.
Alternatively, strong support is placed at the 21-day SMA and 50-day SMA confluence near $3,350. Acceptance below that level will unleash additional downside toward the $3,300 round figure. De
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