Gold prices have surged toward the $3,150 mark during Asian trading on Tuesday, continuing their record-breaking climb. Investors are closely watching the upcoming US tariff announcement on Wednesday, which could provide further direction for the precious metal. In the meantime, updates on tariffs and important US economic data are expected to keep traders engaged.
Gold Price Sees Continued Surge Amid Tariff Concerns
Gold prices hit new highs early Tuesday, following a slight pullback from Monday’s record levels. Tensions surrounding the US’s tariff plans reignited after President Donald Trump dismissed proposals for narrower tariffs. Instead, he emphasized that his upcoming tariffs would target all countries involved in trade with the US.
US Treasury Secretary Scott Bessent highlighted the “Dirty 15,” a group of countries with high tariffs on trade with the US. He confirmed that Trump’s tariff announcement will occur on April 2 at 19:00 GMT.
These renewed tariff concerns have triggered a new wave of US Dollar (USD) selling, as the trade barriers are expected to negatively affect the US economy. A potential economic slowdown in the US could lead to aggressive interest rate cuts by the Federal Reserve, further weakening the USD and US Treasury bond yields, which in turn benefits gold prices.
Gold is also benefiting from increased demand from central banks and rising inflows into exchange-traded funds (ETFs), driven by market instability. The metal is on track for its best quarter since 1986.
Possible Pullback Ahead for Gold Price
However, gold prices may face a pullback in the near future as traders adjust their positions ahead of Trump’s April 2 announcement, dubbed ‘Liberation Day.’ The release of key US economic data could also prompt investors to take profits, increasing volatility in the market.
Technical indicators show that gold’s relative strength index (RSI) is in the overbought zone at 78.50, suggesting that buying momentum could be losing steam. A brief pullback could bring gold prices back toward the $3,100 level.
If prices fall below this point, the next support is seen at $3,077, with a potential test of the $3,050 psychological barrier. On the other hand, gold prices need to settle above $3,150 to push toward the next resistance level of $3,200.
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