GOLD surges to weekly targets, eyes era levelsSpot gold prices have surged on the back of US President Trump’s tariff announcement. Gold prices rose as much as 3.9% on Wednesday as markets were volatile, before closing up 3.4%. At the time of writing today, Thursday (April 10), gold is up as much as $44, or 1.4%, on the day.
Gold prices posted their biggest one-day gain in 18 months on Wednesday as confusion over US President Donald Trump’s tariff agenda prompted investors to buy the precious metal as a safe-haven asset, Bloomberg reported.
But after China announced plans to retaliate with 84% tariffs on US products starting Thursday, Trump immediately raised tariffs on China to 125%. The moves raised concerns that the world's two largest economies were heading toward a full-blown trade war.
Stock markets rallied after Trump announced the tariff suspension. US stocks had their best day since the financial crisis, with the S&P 500 index rising nearly 10% after falling to the brink of a bear market last week.
Bloomberg said the US government's erratic tax plans have shaken the world as investors look for direction and certainty. That has supported gold prices overall, with prices up 18% this year. Expectations of further monetary easing by the Federal Reserve and central bank gold purchases have also boosted prices.
Gold has gained more than $400 this year, hitting an all-time record of $3,167.57 an ounce on April 3.
Minutes from the Federal Reserve's March meeting showed policymakers almost unanimously warned last month that the U.S. economy faces the risk of rising inflation while economic growth slows. Some policymakers noted that there could be "difficult trade-offs" ahead.
According to CME Group's FedWatch tool, traders see a 72% chance that the Fed will cut interest rates in June. Gold itself does not generate interest rates, and will perform well in a low-interest-rate environment.
Investors are now looking to the U.S. consumer price index (CPI) due out today (Thursday) for further trading information.
Technical outlook analysis OANDA:XAUUSD
On the daily chart, gold surged to hit all the weekly upside targets noted and readers in the weekly publication at $3,056 in the short term and then the full price point of $3,100. Looking ahead, gold only has a $3,150 size creature to break to set a new all-time high or more.
The relative strength index (RSI) is building, signaling bullish energy in the near term, as long as gold remains in the price channel, the declines should only be limited corrections and not a trend.
As we have noted to our readers throughout our articles since Trump returned to the White House, dips can be viewed as buying opportunities.
And for the day, the notable positions for the bullish picture on the technical chart of gold will be listed again as follows.
Support: 3,103 – 3,100 – 3,056 USD
Resistance: 3,150 – 3,167 USD
SELL XAUUSD PRICE 3192 - 3190⚡️
↠↠ Stoploss 3196
→Take Profit 1 3184
↨
→Take Profit 2 3178
BUY XAUUSD PRICE 3050 - 3052⚡️
↠↠ Stoploss 3046
→Take Profit 1 3058
↨
→Take Profit 2 3064
