Tariffs Fail to Spark Gold RallyGold fell below $2,780 per ounce as the strengthening U.S. dollar outweighed safe-haven demand following the U.S. decision to impose tariffs on imports from Canada, Mexico, and China. Trump announced a 25% tariff on Canadian and Mexican goods and a 10% levy on Chinese imports, set to take effect on Tuesday. Although such developments typically stimulate demand for gold, the appreciating dollar and interest rate outlook are limiting upward pressure. A stronger dollar makes gold more expensive for international buyers while the inflationary effects of tariffs could keep borrowing costs high, weighing on the appeal of non-yielding assets like bullion. Some investors also engaged in profit-taking after gold recently hit a record high, further contributing to its decline.
Technically, the first resistance level will be 2817 level. In case of this level’s breach, the next levels to watch would be 2858 and 2900. On the downside, 2760 will be the first support level. 2727 and 2710 are the next levels to monitor if the first support level is breached.
