Long

GOLD nears $3,000 as trade tensions escalate

XAUUSD have surged to an all-time high, just shy of the key $3,000-an-ounce mark as global trade tensions and expectations of a Federal Reserve rate cut push them closer to a record high. They have risen nearly 14% this year, following a 27% gain in 2024.

WASHINGTON (Reuters) - President Donald Trump on Thursday threatened to impose 200% tariffs on wine, champagne and other alcoholic beverages from France and the rest of the European Union, marking a further escalation in global trade tensions.

Trump tweeted Thursday that he would impose import tariffs if the European Union continues to impose duties on U.S. whiskey exports. The EU's move is in retaliation for Trump's steel and aluminum tariffs that took effect on Wednesday.

Trump also had harsher words for the European Union. The EU has been one of the United States' closest allies for decades. Trump posted on his Truth Social platform: "The European Union is one of the most hostile and abusive tax and tariff organizations in the world, and their sole purpose is to take advantage of the United States. They just put a disgusting 50% tariff on whiskey. If this tariff is not removed immediately, the United States will soon put a 200% tariff on all wine, champagne and spirits coming from France and other EU member states. This will be a tremendous boon to the American wine and champagne industry."

Trump’s trade policy changes have boosted the price of gold, an asset favored by investors during times of geopolitical and economic uncertainty.

In addition, the Wall Street Journal reported that Russian President Vladimir Putin had rejected plans for an immediate ceasefire in Ukraine, which also contributed to the safe-haven buying of gold.

Russian President Vladimir Putin said Thursday that Russia will not agree to an immediate end to fighting in Ukraine and called for further discussions on ending the war permanently, The Wall Street Journal reported. Moscow’s military is now advancing rapidly, aiming to push Ukrainian troops out of the Kursk region. Putin said any ceasefire at this stage would be in Ukraine’s interests because Russia is winning on the battlefield and there are many issues that need to be resolved before a ceasefire can be reached.

SPDR Gold Trust, the world's largest gold ETF, said its holdings rose to 907.82 tonnes on February 25, the highest since August 2023. Meanwhile, data from China's central bank showed China bought gold for a fourth straight month in February.

Over the weekend, data on US consumer confidence and inflation expectations will be less in the spotlight than tariffs and geopolitical headlines.

For economic data, readers can find more details in the signature section through brief comments during the day.

GOLD hits Bullish targets, heading for all-time high

Technical Outlook Analysis XAUUSD
On the daily chart, gold is down slightly year-to-date after approaching the important raw price level of $3,000.

The current correction is also not significant as the uptrend will still dominate the chart with the price channel as the nearest support at present, the main support is noted by the EMA21 and the other support is the 0.382% Fibonacci extension level.

Meanwhile, the Relative Strength Index (RSI) has not yet risen above the overbought zone, indicating that there is still room for upside.

Intraday, as long as gold remains above the price channel and the 0.382% Fibonacci extension level, its main short-term outlook remains bullish. Even if gold falls below the aforementioned support area, it remains in an overall bullish trend, so the current declines should be viewed as a short-term correction or a buying opportunity.

Next, the target will be the full price point of $3,000 in the short term and more at the 0.50% Fibonacci extension level.

The notable positions for the day are listed as follows.
Support: $2,977 – $2,956
Resistance: $3,000 – $3,021

SELL XAUUSD PRICE 3037 - 3035⚡️
↠↠ Stoploss 3041

→Take Profit 1 3029
↨
→Take Profit 2 3023

BUY XAUUSD PRICE 2949 - 2951⚡️
↠↠ Stoploss 2945

→Take Profit 1 2957
↨
→Take Profit 2 2963

Note

GOLD MARKET ANALYSIS AND COMMENTARY - [March 17 - March 21]

Note

⚫Last week, gold prices hit a record $3,004.82 an ounce due to safe-haven demand from Trump's trade war and geopolitical tensions.

Note

⚫The market is waiting for the Fed's move, as the possibility of a rate cut could continue to push gold prices higher.

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