- The price of gold jumps more than 2.5% on Wednesday with US tariffs activating.
- China, on the other hand, replied while Secretary Besent issues a warning to China about the devaluation of its currency.
- Gold bounces from the region less than $ 3,000 less than $ 3,070 at the time of writing this.
The price of gold (Xau/USD) rise and recovers to 3.045 $ at the time of Wednesday after the tariffs of the president of the United States (USA), Donald Trump, came into force. At one point in this week, the markets were waiting for a last minute solution, since several media reported on Monday that President Trump was considering a 90 -day pause in tariffs for all countries except China. However, the White House declared that any suggestion that President Trump was considering a 90 -day pause in tariffs was “false news.”
“The bounce of gold reflects the growing anxiety of investors on tariff threats and the possible reconfiguration of global commercial standards,” says Christopher Wong, a foreign currency strategist in Oversea-Chinese Banking Corp. Gold remains a good coverage against a more disorderly global economy, Wong said, Bloomberg reports. The market also speculates that greater volatility can lead to Federal Reserve (Fed) to accelerate the cuts of interest rates to prevent a recession. The lowest rates often benefit from gold, which does not pay interest.
In the middle of the European negotiation session, holders arise that China is responding to the tariffs imposed by the US. Tariffs will take effect as of April 10.
The United States Treasury Secretary Scot Besent, on the other hand, said China should rather sit at the table instead of retaling. Besent also said that the country will be the largest loser with these tariff courses. Besent also warned that China should not devalue its currency as an additional measure to avoid US tariffs, Bloomberg reports.
Daily summary of market movements: the FOMC minutes will not move the market
- The actions of Mushot Finance, an Indian financial corporation and the largest non -bank loan company in the country, fell up to 6.3% after the Indian Central Bank said it would carry out an exhaustive review of gold loan regulations, which could increase competition in the sector.
- The CME Fedwatch tool shows that the possibility of an interest rate cut by the Federal Reserve (FED) at the May meeting shot 53.5%, compared to only 10.6% a week ago. For June, the lowest indebtedness costs are 100%, with 55.2% anticipating a cut of 50 basic points (PB).
- Chinese investors channeled a record amount of cash towards bags quoted in the stock market (ETFs) backed by gold last week, attracted by the safety of the asset while the combative rhetoric of the commercial war of the largest economies in the world shakes the global markets. Tickets to four important gold ETFs in the domestic market, including Huaan Yifu Gold ETF, reached a record of 7.6 billion yuan (1 billion dollars) last week, according to Bloomberg calculations, with strong tickets continuing this week, says Bloomberg.
- Later on Wednesday, around 18:00 GMT, the Federal Open Market Committee (FOMC) will publish its latest minutes of the TAS Decision Meeting in March.
Technical analysis of the price of gold: Will it really be resolved?
With the entry of US Tariffs on Wednesday, the market reaction is one of surprise. It seems that the markets were positioned for some last minute solution or delay, which would soften the real impact of tariffs. However, tariffs are immediately in force, and that is enough for last minute investors to return to gold.
Looking up, the resistances are a bit scattered, with the first R1 resistance in 3.041 $ being tested at the time of writing, followed by $ 3,057, a key level since March 20. Above, the R2 resistance at 3.089 $ precedes the current historical maximum of $ 3,167.
In the lower part, the key level of the maximum of March 14 at $ 3,004 coincides with the round number of $ 3,000. If this area is not maintained as support, bassists can point to S1 support in 2,964 $ and at the level of $ 2,955, where many buyers were clearly interested in acquiring Gold on Monday. Below, S2 support in 2,945 $ is the last defense line before the simple mobile average (SMA) of 55 days in 2,935 $.
Xau/USD: Daily graphic
US interest rates
Financial institutions charge interest rates on loans to borrowers and pay them as interest to savers and depositors. They influence the basic types of interest, which are set by central banks based on the evolution of the economy. Normally, central banks have the mandate to guarantee the stability of prices, which in most cases means setting as an objective an underlying inflation rate around 2%.
If inflation falls below the objective, the Central Bank can cut the basic types of interest, in order to stimulate credit and boost the economy. If inflation increases substantially above 2%, the Central Bank usually rises the interest rates of basic loans to try to reduce inflation.
In general, higher interest rates contribute to reinforce the currency of a country, since they make it a more attractive place for world investors to park their money.
The highest interest rates influence the price of gold because they increase the opportunity cost of maintaining gold instead of investing in an asset that accrues interest or depositing effective in the bank.
If interest rates are high, the price of the US dollar (USD) usually rises and, as gold quotes in dollars, the price of low gold.
The federal funds rate is the type to a day that US banks lend each other. It is the official interest rate that the Federal Reserve usually sets at its FOMC meetings. It is set at a fork, for example 4.75%-5.00%, although the upper limit (in this case 5.00%) is the aforementioned figure.
Market expectations on the interest rate of the Federal Reserve funds are followed by the Fedwatch of the CME tool, which determines the behavior of many financial markets in the forecast of future monetary policy decisions of the Federal Reserve.
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.