Gold prices (XAU/USD) are improving, trading around $2,670 on Tuesday. This comes after reports that President-elect Donald Trump’s team is planning to introduce tariffs slowly. The goal is to avoid a sharp rise in inflation, which has been a major concern for policymakers.
Economic Data and Market Updates
Traders are watching key economic reports this week. The Producer Price Index (PPI) is set to be released on Tuesday, with the Consumer Price Index (CPI) following on Wednesday. If these reports show high numbers, it could lead to market swings and raise concerns about inflation. Higher inflation could push US yields up and reduce the chances of a Federal Reserve rate cut in 2025.
Key Market Highlights
- Trump’s administration plans a slow rollout of tariffs to avoid inflation issues.
- The US 10-year benchmark yield dropped to 4.753% on Tuesday, down from 4.802% on Monday.
- The CME Fedwatch tool shows a 47.2% chance of rates staying the same and a 52.8% chance of a rate cut in June.
- The Commodity Futures Trading Commission (CFTC) reported increased gold futures positions, showing traders are still optimistic about gold prices.
Gold Price Analysis
Gold prices are trading within a pattern seen since November. Resistance is at the upper level of this pattern. If gold struggles to break through, prices might fall.
Support Levels:
- $2,650 (55-day Simple Moving Average)
- $2,635 (100-day SMA)
- $2,615 (trend line support)
Resistance Levels:
- $2,708 (October 23 low)
- $2,790 (all-time high)
If gold surpasses $2,708, it could rise toward its highest price ever.
C
Gold markets are reacting to economic data and tariff plans. While the gradual rollout of tariffs eases some worries, inflation and Federal Reserve decisions will be key to future movements.
Read more gold updates or visit our homepage for detailed market insights.
