- The price of gold triggers a historical maximum in the midst of a greater demand for safe refuge due to Trump’s reciprocal tariffs.
- The USD reaches a new annual minimum in the midst of the fall in the yields of the US bonds and the betting of Fed fees, which further supports the precious metal.
- However, the bulls pause to drink breath and refrain from opening new positions in the midst of a bearish divergence in the RSI.
The price of gold (Xau/USD) reached a new historical maximum during Thursday’s Asian session, since investors rushed to take refuge in traditional safe assets in the midst of the impulse of risk aversion. The president of the USA, Donald Trump, announced broad reciprocal tariffs on Wednesday night, which generated concerns about global economic growth and a recession in the US. This, in turn, caused a strong movement of risk aversion, evident in a sea of ​​red in the stock markets, and provided a strong impulse to gold.
Meanwhile, the risk aversion flow, together with the growing acceptance that an economic deceleration in the US drive Several months reached in March and further benefited the price of gold, which does not yield. That said, extreme overcompra conditions limit any additional movement of appreciation for the XAU/USD torque.
Daily summary of market movements: the price of gold prolongs the upward trend in the midst of Trump tariffs that inspire a global escape towards security
- The president of the United States, Donald Trump, imposed a 10% base tariff on all imports and greater taxes on some of the country’s main business partners, sending shock waves through global financial markets. In response, the China Ministry of Commerce declared that it will take energetic measures to safeguard their rights and interests.
- Events increase the risk of a broader commercial war, which could alter global free trade and negatively affect the world economy. This, in turn, promoted the demand for traditional assets of safe refuge. Apart from this, the appearance of strong sales of the US dollar pushes the price of gold to a new historical maximum on Thursday.
- Investors now seem worried that Trump’s protectionist policies could potentially send to the US economy to a recession and are valuing the possibility that the Federal Reserve (Fed) reduces indebted costs in June. In addition, the risk aversion flow drags the yields of the US Treasury bonds to the decrease in general, undermining the USD.
- In the front of the economic data, the US ADP reported on Wednesday that private sector employers added 155k jobs in March, well above the expected 105k and the reviewed reading of the previous month of 84K. However, this did little to impress the USD bulls in the midst of concerns about the economic repercussions of Trump’s commercial policies.
- The operators now wait for the US economic agenda – the publication of the usual weekly applications of unemployment and the ISM services of the US ISM services apart from this, the owners related to the trade could influence the USD and provide some momentum to the XAU/USD pair before the Non -Agricultural Plumbs report (NFP) of the US of Friday.
The price of gold needs to consolidate its recent profits before the next climb in the middle of a Diario Diario Bassist
From a technical perspective, the relative force index (RSI) in the daily chart continues to show overstrust conditions and brakes the Xau/USD bulls to open new positions. Therefore, it will be prudent to expect some short -term consolidation or a modest setback before positioning itself for an extension of a strong upward trend of several months. However, the broader configuration seems to be firmly inclined in favor of the upward operators and suggests that the road of lower resistance for the price of gold is still upwards.
Therefore, any corrective sliding below the minimum of the Asian session, around the area of ​​$ 3,123, could be seen as a purchase opportunity. This, in turn, should help limit the fall of the XAU/USD torque near the 300 $ brand, which should now act as a key point. However, a convincing break below could cause a closure of long positions and drag the price of gold to the area of ​​3.076 $, or the weekly minimum reached on Monday, en route to the 3,057-3.058 region, the 3,036-3.035 area and the 3,000 $ psychological brand.
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.
