Gold price analysis (XAU/USD) stabilizes near $3,020 on Monday as traders analyze the latest tariff developments. Over the weekend, news surfaced that the U.S. government may ease the broad scope of tariffs scheduled for April 2. Instead, U.S. President Donald Trump is reportedly considering more targeted tariffs on specific sectors by country or region. This shift alleviates some market concerns about reciprocal tariffs.
However, experts argue that a 25% tariff is insufficient to force companies to reshore their supply chains. A more significant move, such as 100% to 200% import taxes alongside government subsidies, would be necessary to prompt corporations to relocate manufacturing operations back to the U.S., according to MarketWatch.
Key Market Movers
- Gold Fields’ Proposal: Johannesburg-based Gold Fields submitted a non-binding offer to acquire Australia’s Gold Road Resources for 3.05 AUD per share in cash. The offer valued Gold Road at 3.3 billion AUD, but its board rejected the proposal, Bloomberg reports.
- Zijin Mining Growth: Shares of Chinese metals giant Zijin Mining surged over 5% following record profits, driven by rising gold and copper prices. The company cited global economic and geopolitical uncertainty, along with strong central bank gold purchases, as key drivers for bullion demand, Reuters reports.
- US Tariff Policy Shift: U.S. officials indicate that the upcoming tariffs on April 2 will be more sector-specific than previously anticipated. Despite this shift, traders remain cautious as China and Australia warn of economic repercussions, Bloomberg reports.
Technical Analysis: Market Impact Still Uncertain
Gold price analysis stabilization suggests cautious optimism in response to the softened tariff stance. However, the potential for additional trade measures remains a key concern.
- Resistance Levels: Gold currently hovers above the intraday pivot point of $3,023. The first resistance level (R1) stands at $3,046. If President Trump reverses his administration’s stance, a retest of the all-time high at $3,057 could occur.
- Support Levels: On the downside, intraday support (S1) is at $2,998, placing the $3,000 psychological level at risk. A break below could lead to further declines toward the secondary support level (S2) at $2,975.
Outlook and Conclusion
Gold prices remain stable, supported by demand from central banks and ETFs. The softened tariff rhetoric reduces immediate market stress but does not eliminate long-term concerns. Traders should monitor upcoming policy announcements for potential shifts in market sentiment.
For more insights and real-time updates, visit Daily Gold Signal. Stay informed with the latest Daily Gold Updates.
