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Gold edged higher on Tuesday, supported by a weaker dollar and escalating U.S.-China trade tensions, despite pressure from rising U.S. Treasury yields. Spot gold rose 0.1% to 2984.16 per ounce by mid-afternoon, while futures settled 0.5% higher at 2990.20.
The 10-year Treasury yield hit a one-week high, dampening gold's appeal. Still, ongoing trade uncertainty and potential U.S. interest rate cuts kept the outlook bullish. A break above 3,055 could open the path to 3130, with stronger resistance near 3272.314, while weakness below 3,000 might push prices down to 2950-2930.
Market anxiety intensified after President Trump’s announcement of a 104% tariff on Chinese goods, fueling safe-haven demand. Gold, up 15% this year, also benefited from a weaker dollar, which makes it cheaper for foreign buyers.
We now await Fed meeting minutes for clues on rate cuts, with a 40% chance priced in for May. Expectations of easing could drive gold prices higher in the near term.
The Support and Resistance outlined in green and red are the respective support/resistance for this pair currently for 1D-1Y timeframes!
No Nonsense. Just Really Good Market Insights. Leave a Boost
TradeWithTheTrend3344
Gold edged higher on Tuesday, supported by a weaker dollar and escalating U.S.-China trade tensions, despite pressure from rising U.S. Treasury yields. Spot gold rose 0.1% to 2984.16 per ounce by mid-afternoon, while futures settled 0.5% higher at 2990.20.
The 10-year Treasury yield hit a one-week high, dampening gold's appeal. Still, ongoing trade uncertainty and potential U.S. interest rate cuts kept the outlook bullish. A break above 3,055 could open the path to 3130, with stronger resistance near 3272.314, while weakness below 3,000 might push prices down to 2950-2930.
Market anxiety intensified after President Trump’s announcement of a 104% tariff on Chinese goods, fueling safe-haven demand. Gold, up 15% this year, also benefited from a weaker dollar, which makes it cheaper for foreign buyers.
We now await Fed meeting minutes for clues on rate cuts, with a 40% chance priced in for May. Expectations of easing could drive gold prices higher in the near term.
The Support and Resistance outlined in green and red are the respective support/resistance for this pair currently for 1D-1Y timeframes!
No Nonsense. Just Really Good Market Insights. Leave a Boost
TradeWithTheTrend3344
Trade active
Note
Trump announces a 90-day suspension of tariffs for select countries, while sharply increasing tariffs on China to 125%, effective immediately. Significant market volatility is likely ahead!Note
The U.S. CPI report for March 2025, set to be released on April 10, is expected to show a slight monthly increase in core inflation (+0.3%) and a slowdown in headline inflation (+0.1% m/m, +2.5% y/y). Despite signs of cooling inflation from recent wage and services data, markets remain on edge due to rising tariff-related price pressures. If the data meets expectations or comes in weaker, the U.S. dollar is likely to weaken, especially against safe-haven currencies like JPY CHF, and XAU, as it would reinforce a dovish Fed outlook. However, any upside inflation surprise could revive concerns about persistent inflation, supporting the dollar—particularly against risk-sensitive currencies like AUD and NZD. Overall, the bias leans toward dollar weakness unless CPI significantly exceeds forecasts.Trade closed: target reached
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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.