📊
Gold continues rising on newly announced U.S. tariffs
The gold (XAU) price rose by 0.74% yesterday. Safe-haven flows increased after U.S. President Donald Trump announced reciprocal tariffs on over 120 countries, potentially starting a global trade war.
👉
Possible effects for traders
Yesterday, Trump said he would impose a 10% baseline tariff on most goods imported to the U.S. and even higher levies on dozens of countries, including the biggest U.S. trading partners and allies. Most economists argue that Trump's actions significantly undermine the international trade system, potentially leading to higher inflation and slower economic growth. Among the most impactful tariffs are 34% on China, 20% on the European Union (EU), 24% on Japan, and 26% on India. 'The reciprocal tariffs are much more aggressive than expected, which should lead to asset market sell-offs and a lower U.S. dollar. Gold's prospects are excellent here, with $3,200 as the new short-term target. There are plenty of unanswered questions, and the sense that many things might be negotiable will make markets very volatile in the short term', said Tai Wong, an independent metals trader.
Gold is considered an asset that preserves its value during periods of political and financial uncertainty. XAUUSD has already risen by more than $500 so far in 2025 and continues to trade above all key moving averages. 'A breach of resistance at $3,147–3,149 would bode well for a push to $3,200 and lend confidence to bullish outlooks that highlight $3,300 and $3,500', said Peter Grant, vice president and senior metals strategist at Zaner Metals.
XAUUSD rose during the Asian and early European trading session, hitting a new all-time high above $3,160 per ounce. Today, the market will probably have to digest the world's response to Trump tariffs. The retaliation from China and the EU will be particularly important. In addition, U.S. macroeconomic reports may add extra volatility. Traders should focus on the Jobless Claims at 12:30 p.m. UTC and ISM Services Purchasing Managers' Index (PMI) at 3:00 p.m. UTC. 'Spot gold may retrace into a range of $3,101 to $3,116 per ounce, as a five-wave cycle from $2,833 could be ending', said Reuters analyst Wang Tao.
📲
More trading opportunities in our app
If the link doesn’t work, try a special one for your country:
🇮🇩ID 🇮🇳IN 🇵🇰PK 🇹🇭TH
Follow @octa_analytics for more expert information