Gold prices edged higher on Tuesday, driven by increased safe-haven demand amid Trump’s tariff threat and escalating geopolitical tensions in the Middle East ¹. However, the gains were limited by a stronger dollar and rising US Treasury bond yields.
Impact of Trump’s Tariff Threat on Gold Prices
Trump’s pledge to impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China, has sparked concerns about a potential global trade war ². This has led to increased safe-haven demand for gold, driving prices higher.
Geopolitical Tensions and Gold Prices
The ongoing Russia-Ukraine conflict and the recent missile attacks by Russia at the Ukrainian city of Dnipro have heightened geopolitical tensions, bolstering gold’s appeal as a safe-haven investment ².
Technical Analysis: Gold Prices
From a technical perspective, gold prices are consolidating near the $2,625 level, with buyers staying cautious amid an impending bear cross ¹. The 21-day SMA is closing in to cut the 50-day SMA from above, which could validate the bearish crossover.
Trading Tips and Strategies
- Gold Trading Tips: Buy gold futures on dips.
- Silver Trading Tips: Watch for breakout above $18.50.
- XAUUSD Trading Tips: Buy on dips.
- Crude Oil Trading Tips: Monitor oil supply.
- Natural Gas Trading Tips: Track weather forecasts.
Key Market Data:
- Gold prices rose 1% to $2,625/oz
- Trump’s tariff threat sparked safe-haven demand
- Geopolitical tensions in the Middle East increased
Market Outlook:
The current market sentiment is bullish for gold, with investors expecting further price increases amid ongoing geopolitical tensions and Trump’s tariff threat.