Gold price forecast continue their downward trend, hitting a ten-day low near $2,880 on Thursday. This decline follows statements from U.S. President Donald Trump during a cabinet meeting on Wednesday, where he created uncertainty regarding upcoming tariffs. His comments sparked confusion among investors, increasing selling pressure on the precious metal.
Key Takeaways:
- Gold price drops: XAU/USD extends its correction, hitting a ten-day low of $2,880.
- Trump’s tariff remarks: The U.S. President hints at selective tariffs but lacks clarity on implementation.
- Market reaction: Investors turn cautious amid uncertainty over trade policies and economic data.
- Technical levels: Key resistance at $2,912, while support sits at $2,860.
Market Context: Trump Tariff Impact Weighs on Gold
Gold price forecast recent decline is fueled by uncertainty surrounding U.S. trade policies. President Trump’s mixed signals on tariffs during a cabinet meeting left markets uncertain about which countries and products would be affected.
He stated, “Tariffs will go on, not all, but a lot of them,” but failed to provide clear details. He confirmed a 25% tariff on European autos and other imports, while tariffs on Canada and Mexico are set to take effect on April 2. This lack of clarity has driven market volatility, with gold prices responding to the risk-off sentiment.
Daily Market Movers: Gold Price Forecast & Tariff Impact
Nvidia’s Earnings & Trump Tariff Impact on Gold Price
Investors closely watched Nvidia’s (NVDA) earnings report, which slightly exceeded sales estimates at $43 billion. However, profit margins came in lower than expected due to the launch of the Blackwell chip design. Concerns over AI spending and potential U.S. tariffs on tech products have led to caution in the broader market.
U.S. Economic Data in Focus
The CME FedWatch Tool suggests a 33% chance of interest rates remaining steady in June, with the rest of the market expecting a potential rate cut. Investors are also monitoring upcoming economic data:
- U.S. GDP (Q4 Second Estimate): Expected to hold steady at 2.3%.
- Personal Consumption Expenditures (PCE): Forecasted at 2.3% (headline) and 2.5% (core).
These figures will play a crucial role in shaping Federal Reserve policy expectations, impacting gold prices.
Technical Analysis: Critical Levels to Watch
Gold traders have been riding an aggressive rally, but with the latest correction, some may face forced selling due to stop-loss triggers. This could amplify downward pressure, potentially pushing prices toward $2,860.
Key Levels:
- Resistance:
- $2,912 (Pivot Point): A recovery above this level signals renewed buying interest.
- $2,934 and $2,951: Intraday resistance levels (R1 & R2).
- Support:
- $2,890: Tuesday’s low, now showing signs of weakness.
- $2,873 (S2): Breaking below this level could lead to a further decline.
- $2,860: Next major support zone.
If gold regains strength above $2,912, it may indicate that traders are taking advantage of the dip. However, continued uncertainty from trade policies could keep gold prices under pressure.
Conclusion: Market Awaits Clarity on Tariffs & Economic Data
Gold remains under selling pressure as Trump’s unclear tariff strategy fuels uncertainty. Key economic data, including U.S. GDP and PCE figures, will be critical in shaping market sentiment. Traders should closely monitor technical levels and upcoming Federal Reserve signals for potential price direction.
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