The main driver of the rally comes from the news that the United States will impose tariffs of up to 104% on imports from China starting Wednesday. This decision has sparked concerns about a potential global economic recession, thereby boosting demand for safe-haven assets like gold.
In addition, the market is expecting the Federal Reserve (Fed) to begin a rate-cutting cycle soon, with over a 60% chance of it happening as early as May, and a projected five more rate cuts in 2025. This expectation is weakening the USD, further supporting gold prices. Although some Fed officials continue to deliver hawkish signals, concerns that tariffs could increase inflation remain and are putting pressure on the Fed's upcoming policy decisions.
From a technical standpoint, an effort to shift the trend has formed above the resistance of the descending trend channel, and price is now reacting near the key resistance level at 3057. A breakout and price consolidation above 3057 will trigger the continuation of the current upward move. A retest of the previous broken consolidation resistance at 3020 may also occur.
The market structure is fully bullish. A breakout above key resistance or a pullback to support levels will likely lead to the next phase of growth, but if the 3057 level is broken earlier than expected, it could eventually push this metal up to 3110.
In addition, the market is expecting the Federal Reserve (Fed) to begin a rate-cutting cycle soon, with over a 60% chance of it happening as early as May, and a projected five more rate cuts in 2025. This expectation is weakening the USD, further supporting gold prices. Although some Fed officials continue to deliver hawkish signals, concerns that tariffs could increase inflation remain and are putting pressure on the Fed's upcoming policy decisions.
From a technical standpoint, an effort to shift the trend has formed above the resistance of the descending trend channel, and price is now reacting near the key resistance level at 3057. A breakout and price consolidation above 3057 will trigger the continuation of the current upward move. A retest of the previous broken consolidation resistance at 3020 may also occur.
The market structure is fully bullish. A breakout above key resistance or a pullback to support levels will likely lead to the next phase of growth, but if the 3057 level is broken earlier than expected, it could eventually push this metal up to 3110.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.