Gold price (XAU/USD) surge on Thursday, climbing approximately 1.00% to trade at $3,050 at the time of writing. The rally was driven by the latest tariff announcement from United States President Donald Trump, who signed a proclamation enforcing a 25% tariff on auto imports. The sharp increase in gold prices gained momentum just before the US trading session, reflecting heightened market uncertainty.
Key Points for Gold Price:
- Gold price surged by approximately 1.00% to $3,050 due to Trump’s new auto tariffs.
- Trump imposed a 25% tariff on auto imports, escalating trade tensions with the EU and Canada.
- Potential additional tariffs on lumber, semiconductors, and pharmaceuticals create market uncertainty.
- Goldman Sachs raised its gold price forecast to $3,300 by year-end due to strong central bank demand.
- Technical analysis shows key resistance at $3,057 and support at $3,000, maintaining a bullish outlook.
- Investors turn to gold as a safe-haven asset amid rising economic and geopolitical uncertainties.
Gold Market Analysis: Reaction to New Tariffs
President Trump signaled that additional tariffs could be imposed on the European Union and Canada if both regions coordinate actions detrimental to the US economy. Trump mentioned potential levies on lumber, semiconductors, and pharmaceutical drugs, further influencing the gold price surge. These announcements have introduced further uncertainty regarding the anticipated reciprocal tariffs scheduled for April 2nd and 3rd.
Daily Market Movers: Forecasts and Developments
- President Trump confirmed a 25% tariff on auto imports and hinted at further duties on European and Canadian products, escalating the ongoing trade conflict.
- Bloomberg reported that Trump emphasized the need to boost domestic manufacturing through these tariffs.
- Goldman Sachs increased its gold price forecast to $3,300 by year-end, citing robust central bank demand and substantial inflows into bullion-backed ETFs.
- Sibanye and Gold Fields are engaged in a prolonged legal dispute over property valuations with Rand West City Local Municipality.
- Gold Fields remains locked in an acquisition battle with Australian miner Gold Road Resources.
Gold Price Technical Analysis: Bullish Momentum Continues
With the trade tariff outlook for early April still uncertain, investors are turning to gold as a safe-haven asset, supporting the ongoing bullish trend.
Key Resistance Levels:
- R1 Resistance: $3,030 (already breached earlier on Thursday)
- R2 Resistance: $3,040 (just below Friday’s high)
- All-Time High: $3,057 (key resistance level)
Key Support Levels:
- S1 Support: $3,010 (first intraday support level)
- Psychological Level: $3,000 (now seen as a bullish pivot point)
- S2 Support: $3,001 (reinforcing the $3,000 psychological level)
Conclusion and Market Outlook
Gold prices continue their upward trajectory amid heightened global economic uncertainty. The escalating trade tensions fueled by Trump’s tariff measures are driving increased demand for gold. With analysts projecting a potential rise to $3,300, the bullish outlook remains intact. Investors will closely monitor developments in the coming days, particularly around the official tariff implementations.
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