Key Points:
- XAUUSD (Gold) rose to $2,888, extending its rebound from a low of $2,832.62 earlier this week.
- A stronger U.S. dollar capped gains, but inflation risks kept demand intact as Trump confirms 25% tariffs on Mexico and Canada, with China levies doubled to 20%.
- Reciprocal tariffs set for April 2, fueling trade war fears and safe-haven demand.
Gold Gains Amid Trade War Concerns
XAUUSD (Gold) climbed to $2,888 per ounce on Tuesday, as traders assessed global trade risks and inflation pressures. The metal rebounded from its weekly low of $2,832.62, supported by persistent economic uncertainty.
Technical Analysis: The Bullion Shines Slightly Brighter
Picture: XAUUSD rises to 2888.13, nearing resistance at 2895.22 with bullish momentum, as seen on the VT Markets app.
XAUUSD gained 1.12%, closing at 2888.13 after opening at 2856.19. The price reached a high of 2893.73 and a low of 2881.97, reflecting steady bullish momentum.
The moving averages (MA 5,10,30) indicate an uptrend, with short-term MAs staying above the longer-term average. The MACD (12,26,9) histogram shows bullish strength but has started to flatten, suggesting a possible slowdown.
Key support is at 2832.62, while immediate resistance is at $2,895–with support holding near $2,880. A break above $2,900 could signal further upside, while failure to hold above support may expose the downside.
Dollar Strength Caps Bullion’s Upside
Despite the recovery, a stronger U.S. dollar kept gold’s rally in check. Trump reaffirmed a 25% tariff on Mexico and Canada while doubling China tariffs to 20%, adding to market caution.
Market Outlook
Market participants are closely watching Wednesday’s ADP employment report and Friday’s NFP data, as any weak economic prints could reinforce Fed rate cut expectations, supporting gold.
