Daily Price Outlook
Gold (XAU/USD) surged higher on Thursday, gaining around 1.18%, trading at $3,055, as market concerns about the escalating trade tensions between the United States and its major trading partners led investors to flock to the precious metal.
However, the spike in gold prices was primarily fueled by the latest trade war developments, following US President Donald Trump’s announcement of a new 25% tariff on auto imports.
Trade Tensions and Tariff Threats Drive Gold’s Safe-Haven Appeal
President Trump’s decision to implement a 25% tariff on all cars not made in the United States has raised fears of retaliatory measures, including potential duties on lumber, semiconductors, and pharmaceuticals.
This uncertainty has led to an increased demand for gold as a safe-haven asset, with investors seeking protection against the potential economic fallout. The situation is still unclear, with many unsure about the details of the tariffs that will be introduced on April 2nd and 3rd, which is adding to market worries.
Meanwhile, the ongoing legal battle between Sibanye and Gold Fields over property valuations has added to the uncertainty surrounding gold mining operations, contributing to the overall bullish sentiment in the gold market.
Goldman Sachs Raises Gold Price Forecast to $3,300
In response to the market uncertainty, Goldman Sachs has raised its year-end gold price forecast to $3,300 per ounce, citing stronger-than-expected central bank demand and solid inflows into bullion-backed exchange-traded funds (ETFs).
The bank’s revised outlook reflects the growing confidence in gold’s role as a hedge against rising trade risks and inflation concerns. With central banks globally continuing to accumulate gold, the precious metal’s bullish momentum is expected to continue, bolstered by these factors.
Mixed Market Sentiment and the US Dollar’s Weakness
On the broader market front, the US dollar continues to struggle, providing further support for gold. The US dollar remains under pressure as market participants anticipate the potential impact of additional tariffs, as well as growing speculation about interest rate cuts by the Federal Reserve.
Therefore, the struggling US dollar makes gold more attractive to investors, as it strengthens gold’s appeal as a safe-haven asset. The anticipation of tariffs and rate cuts further supports gold’s price.
Looking ahead, traders are closely monitoring further developments in the trade dispute and any changes in US monetary policy that could influence gold’s performance in the coming months.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) continues to show resilience despite modest intraday pressure, currently trading near $3,028.27.
The metal is consolidating just above its key pivot point at $3,021.46, which also aligns closely with the 50-period Exponential Moving Average (EMA) at $3,021.41. This convergence is acting as a short-term anchor, maintaining the metal’s bullish structure.
On the upside, the first resistance level is located at $3,039.33. A sustained move above this level could open the door to $3,047.18 and potentially $3,057.66, the latter of which marks last week’s high and a critical breakout point.
However, bulls need a convincing push through $3,039.33 to reassert control and challenge these higher targets.
On the downside, immediate support rests at $3,005.28. A breach here could expose gold to a deeper pullback toward $2,993.39 and $2,982.18.
These levels represent key technical defenses that have previously triggered buying interest. A close below $2,982 would indicate a breakdown from the current bullish setup.
From a trading perspective, the structure favors a tactical long position above $3,021, targeting $3,039 while maintaining a stop at $3,011 to mitigate downside risk.
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