GOLD Gold Price Forecast: XAU/USD drifts higher above $3,050 amid escalating US-China trade tensions Gold price gains momentum to near $3,080 in Wednesday’s late American session. Trump announced a stay on tariffs for all countries except China. Traders brace for the US CPI inflation data, which will be released later on Thursday. The Gold price (XAU/USD) edges higher to around $3,080 during the late American session on Wednesday. The safe-haven demand amid escalating trade tensions between the United States and China provides some support to the precious metal.
US President Donald Trump said on Wednesday that he authorized a 90-day pause on new tariffs for most US trade partners to 10% to allow trade negotiations with those countries. However, Trump raised the tariffs imposed on imports from China to 125% “effective immediately” due to the “lack of respect that China has shown to the World’s Markets.”
The economic uncertainty and the fears that Trump’s tariff policies would trigger inflation and dampen economic growth boost the Gold price, a traditional safe-haven asset. "Ultimately gold continues to be seen as a hedge against instability here. We got a situation where tariffs are becoming a big problem, and you have inflationary expectations going higher, and that's manifested by higher yields," said Bart Melek, head of commodity strategies at TD Securities.
Traders will keep an eye on the US Consumer Price Index (CPI) inflation report, which is due later on Thursday. Any sign of a hotter-than-expected outcome, could lift the Greenback and weigh on the USD-denominated commodity price in the near term. SPXBTCUSDDXYSILVER
GOLD 40 Minutes to FOMC News – Stay Focused and Alert. The countdown begins! Just 40 minutes until the FOMC announcement. Keep your strategies sharp and stay tuned for potential market-moving updates. SPXBTCUSDSILVERNVDA
XAGUSDSILVER Yields and Trade Wars Induce Silver Instability Silver dropped below $30 per ounce, hitting $29.57 on April 4, its lowest since mid-January, as rising U.S. Treasury yields made non-yielding assets less attractive. The U.S. announced a 104% tariff on Chinese imports starting at midnight, intensifying trade war concerns. Although over 70 countries have reportedly requested tariff relief, market sentiment remains cautious. The EU’s retaliatory tariff plans further fueled risk aversion, pressuring industrial metals. Still, expectations of Fed rate cuts and safe-haven demand offer some support.
Technically, the first resistance level is located at 30.90. In case of its breach, 31.40 and 32.50 could be monitored respectively. On the downside, first support is at 29.00. 28.40 and 27.50 would become the next support levels if this level is passed.
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