Gold price hit two-week highs near $3,410 on US tariffs on one-kilo Gold bars, then retreats so far this Friday.
The US Dollar eyes a weekly loss amid Fed, economic and trade concerns, focus shifts to US CPI data.
Gold price could retest $3,350 confluence support if profit-taking intensifies heading into the weekend.
Gold price is seeing a sharp pullback after hitting fresh two-week highs near $3,410 early Friday. Traders digest the latest tariff headlines as the bright metal heads for a second straight weekly advance.
The latest leg lower in Gold price is largely seen on the back of profit-taking as traders cash in on the spike in Gold futures to fresh record highs.
This follows a Financial Times report on Thursday, citing a letter from Customs Border Protection that stated the US has imposed tariffs on imports of one-kilo Gold bars.
Despite the corrective move lower, Gold price will continue to draw safe-haven flows as traders believe the tariffs on Gold bars are likely to cause a big disruption in trade from Switzerland and London. Note that Switzerland is the world’s largest Gold refining hub.
On Thursday, US President Donald Trump’s higher reciprocal tariffs on imports from dozens of countries took effect, with heavy levies on Switzerland, Brazil and India. Trump also threatened additional tariffs on China and Japan against their oil imports from Russia.
Concerns over the impact of tariffs on the already dwindling US economic momentum remain a drag on market sentiment and the US Dollar , limiting any downside in Gold price.
Furthermore, markets are now expecting the Fed to cut interest rates by a total of 100 basis points (bps), starting later this year and finishing early next year, in the face of renewed economic and trade worries.
The discouraging sentiment around the Fed continues to undermine the performance of the US Dollar while keeping the ‘dip-buying’ interest around Gold price intact.
However, Gold price remains at risk of further correction due to the repositioning ahead of next week’s crucial US CPI inflation data.
Daily technical analysis
Gold time is battling the critical barrier at $3,395, although the bias remains positive amid a Bull Cross in play and a bullish daily RSI.
The leading indicator holds comfortably above the midline, currently near 57, suggesting that the bullish potential remains intact in Gold price.The 21-day closed above the 50-day SMA on Tuesday, confirming a Bull Cross.
Gold price needs a weekly closing above the rising trendline support-turned-resistance at $3,395 for a sustained uptrend toward the record highs of $3,500.
Ahead of that, the $3,440 static hurdle and the June 16 high of $3,453 will challenge bearish commitments.
To the downside, 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. Deeper declines will challenge the 100-day SMA at $3,289.
GOLD appears ‘buy-the-dips’ trade, seeks acceptance above $3,400
Gold price is seeing a sharp pullback after hitting fresh two-week highs near $3,410 early Friday. Traders digest the latest tariff headlines as the bright metal heads for a second straight weekly advance.
The latest leg lower in Gold price is largely seen on the back of profit-taking as traders cash in on the spike in Gold futures to fresh record highs.
This follows a Financial Times report on Thursday, citing a letter from Customs Border Protection that stated the US has imposed tariffs on imports of one-kilo Gold bars.
Despite the corrective move lower, Gold price will continue to draw safe-haven flows as traders believe the tariffs on Gold bars are likely to cause a big disruption in trade from Switzerland and London. Note that Switzerland is the world’s largest Gold refining hub.
On Thursday, US President Donald Trump’s higher reciprocal tariffs on imports from dozens of countries took effect, with heavy levies on Switzerland, Brazil and India. Trump also threatened additional tariffs on China and Japan against their oil imports from Russia.
Concerns over the impact of tariffs on the already dwindling US economic momentum remain a drag on market sentiment and the US Dollar , limiting any downside in Gold price.
Furthermore, markets are now expecting the Fed to cut interest rates by a total of 100 basis points (bps), starting later this year and finishing early next year, in the face of renewed economic and trade worries.
The discouraging sentiment around the Fed continues to undermine the performance of the US Dollar while keeping the ‘dip-buying’ interest around Gold price intact.
However, Gold price remains at risk of further correction due to the repositioning ahead of next week’s crucial US CPI inflation data.
Daily technical analysis
Gold time is battling the critical barrier at $3,395, although the bias remains positive amid a Bull Cross in play and a bullish daily RSI.
The leading indicator holds comfortably above the midline, currently near 57, suggesting that the bullish potential remains intact in Gold price.The 21-day closed above the 50-day SMA on Tuesday, confirming a Bull Cross.
Gold price needs a weekly closing above the rising trendline support-turned-resistance at $3,395 for a sustained uptrend toward the record highs of $3,500.
Ahead of that, the $3,440 static hurdle and the June 16 high of $3,453 will challenge bearish commitments.
To the downside, 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. Deeper declines will challenge the 100-day SMA at $3,289.
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