- Gold could achieve a second day of earnings this week.
- Copper tariffs are the last in the headlines on tariffs of US President Trump.
- Gold could return to the maximum historical level of 3,057 $ at a slow pace.
The price of gold (Xau/USD) is rising to around $ 3,022 at the time of writing on Wednesday and is turning this week’s performance into positive numbers. The precious metal is being bought along with other precious metals while copper reaches a new historical maximum. The copper metal is at the center of attention after the president of the United States (USA), Donald Trump, mentioned on Tuesday that copper tariffs will be implemented in the coming weeks, which is long before the markets anticipated.
Meanwhile, there is also a risk of headlines on Ukraine, where a high fire agreement in the Black Sea is on the table. The president of Ukraine, Volodymyr Zelenskiy, was quick to support the progress and said his country was ready to adhere to him immediately. The Kremlin was quick to issue additional demands that would have to be fulfilled before the high fire agreement in the Black Sea could be valid, with the request that the sanctions are stopped to the banks and companies involved in agricultural exports, Bloomberg reports.
What moves the market today: US consumers worried about the US economy.
- The main friction point in the conversations for the acquisition of the Australian mining Gold Road Resources by Gold Fields of South Africa was the price, according to the executive director of the Australian company. In an interview on Wednesday, Gold Road Resources CEO Duncan Gibbs said the company is still open to more conversations with Gold Fields, but noted that most of its shareholders do not support an acquisition to the price proposed by its partner, reports Dow Jones.
- Another reason mentioned for the purchase of gold this Wednesday is that the consumer’s confidence of the US Board conference fell to the lowest level in four years in March due to concerns about the increase in commercial wars and the highest prices, Bloomberg reports.
- The CME Fedwatch tool sees the Federal Reserve policy rate (FED) without changes in its May meeting with 87.1%. The possibilities of a rate cut in June are currently 63.2%.
Technical analysis: consolidation ahead
Gold observes how the increase in copper prices raises the entire complex of precious metals. This is a good counterweight to the decrease in fears on reciprocal tariffs seen Monday. This week’s maximum proof is expected, about $ 3,036, before the historical maximum of $ 3,057 enters into play.
On the positive side, the daily resistance R1 stands at $ 3,034 and coincides with the maximum of this week for now. Above, the R2 resistance at $ 3.049 coincides approximately with the maximum of Friday. This means that this level is a heavy barrier before aiming at the current historical maximum of 3,057 $.
On the negative side, IntradÃa S1 support is found at $ 3,006, preceding the level of $ 3,000, which can be perceived as an upward signal. That means that the level of $ 3,000 is no longer exposed and has some circuit breaking element before slowing down any downward movement. Below, the S2 support is at 2,992 $.
Xau/USD: Daily graphic
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
