XAU/USD: Gold Pops to $3,120 to Break Upper Line in Rising Channel. What’s Next?

Precious metal was marching higher to start the week with Trump’s Liberation Day coming very soon. Will gold get a tariff or a pass?

🚀 Gold Takes It Up a Notch

• Gold prices XAUUSD propelled higher Monday morning, blasting to a fresh record above $3,120 after taking out a long-term resistance. The yellow metal cracked through the upper line of an ascending channel (also called rising channel), which kicked off way back in the day — late August 2024.
• With its fresh upside swing today, gold invalidates the chance of ricocheting off of the line and moving back into the trend. It would’ve been its sixth touch-and-reverse point but no — you bulls had to break the pattern.

📈 Technicals Under Control

• Where to now? Gold has never been higher so no amount of technical analysis could now spot a potential inflection point. All three major moving averages — 50-day, 100-day, 200-day — are well below current market prices and the RSI and MACD aren’t going crazy off the chart to indicate a turning point.
• Without a clear technical signal to narrate gold’s next move, traders and investors are turning their attention to the looming reciprocal tariff deadline — April 2, also going by the name Liberation Day.

📅 Fundamentals? Not Under Control

• On Wednesday, April 2, the world will find out Donald Trump’s new way of doing business with just about everyone. That’s when the White House will release its tariff agenda, laying out tariff hikes for every country that trades goods and services with the US. The key question for gold bugs: is gold in there, too?
• Trump hasn’t hinted at slapping gold with a tariff but the prospects of that move have pumped the prices to where they are now. Is gold getting a tax charge on import? We find out Wednesday. Until then, speculation is bound to stay in full swing.