Gold price forecast trades lower at approximately $2,795 during Monday’s early Asian session. The decline is attributed to the strengthening US Dollar (USD) after US President Donald Trump announced fresh tariffs.
Impact of Trump’s Tariffs on Gold Price Forecast
On Saturday, the US government informed Canada that it would impose a 25% tariff on Canadian and Mexican imports. Additionally, China faces a 10% tariff, while Canadian energy products will be taxed at 10%, according to CTV. These tariffs take effect on Tuesday. In response, Canada, Mexico, and China have pledged to counteract these measures, which has strengthened the USD and exerted downward pressure on gold price forecast.
Factors Supporting Gold Prices
Despite the tariff-induced decline, several factors may support gold prices. The Federal Reserve’s (Fed) ongoing rate-cutting cycle increases safe-haven demand, while economic uncertainties contribute to market volatility. Additionally, robust central bank purchases provide further strength to the precious metal.
Prathamesh Mallya, DVP-Research at Angel One Ltd, highlighted that gold prices rose by over 2% last week. Investors turned to safe-haven assets amid concerns regarding interest rate cuts and tariff disputes.
Conclusion
The gold market remains volatile due to geopolitical uncertainties and economic developments. Traders must closely monitor global trade policies and Federal Reserve actions. For in-depth gold price updates, visit Daily Gold Signal. Additionally, you can explore daily gold forecasts at Daily Gold Update.
