Gold price (XAU/USD) stabilizes near $3,020 on Tuesday as traders react to fresh tariff announcements from U.S. President Donald Trump. The president signed an executive order imposing 25% “secondary tariffs” on imports from countries purchasing oil from Venezuela. This policy could lead to significant tariff hikes on Chinese and Indian goods.
Market Context: Key Developments Driving Gold Prices
- Tariff Updates: Trump mentioned that reciprocal tariffs might be eased for nations aligning with U.S. reshoring policies. However, he also indicated forthcoming tariffs on vehicles, aluminum, and pharmaceuticals, while lumber and semiconductor chips might also face trade restrictions.
- ETF Inflows: Gold-backed Exchange Traded Funds (ETFs) are witnessing higher investment volumes, suggesting increased market confidence in the yellow metal and boosting overall gold price stability.
- Corporate Takeover Battle: Gold Road Resources’ CEO, Duncan Gibbs, labeled Gold Fields’ $3.3 billion takeover bid as overly aggressive. This signals growing tension in the global gold mining sector.
- Agricultural Market Panic: Trump’s proposed levies on Chinese-made vessels entering U.S. ports could disrupt agricultural exports, impacting crops like wheat, corn, and soybeans.
- Venezuela Tariff Strategy: The U.S. government aims to restrict Venezuela’s oil trade by imposing indirect tariffs, a move that could escalate broader global trade disputes.
Key Points for Gold Price:
- Gold prices stabilize around $3,020 as traders react to Trump’s new tariff policies.
- The U.S. president imposes 25% secondary tariffs on imports from countries buying oil from Venezuela.
- Trump hints at potential tariffs on vehicles, aluminum, pharmaceuticals, lumber, and semiconductor chips.
- Gold-backed ETFs see increased investment, indicating rising market confidence in the metal.
- A $3.3 billion hostile takeover bid for Gold Road Resources sparks tension in the mining sector.
- Proposed levies on Chinese-made ships could disrupt U.S. agricultural exports.
- Technical indicators suggest key resistance at $3,028 and $3,046, while support stands at $2,997 and $2,984.
Technical Analysis: Key Support and Resistance Levels
- Resistance Levels:
- Daily R1 resistance at $3,028.
- R2 resistance at $3,046, aligning with Friday’s peak and Monday’s R1 level.
- The current all-time high at $3,057 remains a critical level.
- Support Levels:
- S1 support stands at $2,997, putting the $3,000 mark under scrutiny.
- No significant defensive levels before S2 support at $2,984.
With gold prices reacting to global trade tensions and ETF inflows, traders should monitor upcoming tariff decisions and geopolitical shifts. Stay updated with expert market insights at Daily Gold Signal. For more in-depth daily gold updates, visit Daily Gold Update.
