Key Points:
- Gold sustains above $3,330 per ounce, supported by a 3% surge the previous session.
- Gold closes at $3,340.13, maintaining a strong upward trend.
- U.S. trade policy uncertainty and tariffs support safe-haven demand.
Gold Prices Maintain Strength Amid U.S. Trade Policy Uncertainty
Gold prices held firm above $3,340 per ounce as traders reacted to the continued uncertainty surrounding U.S. trade policy. After surging more than 3% in the previous session, gold posted further gains, reaching a high of $3,357.72 on Thursday.
The precious metal’s safe-haven appeal was further amplified by market reactions to President Donald Trump’s unpredictable tariff announcements.
Tariff Talks and Fed Policy Drive Market Sentiment
Uncertainty surrounding Trump’s trade tariffs, especially the ongoing investigation into semiconductor and pharmaceutical imports, has kept traders on edge. Additionally, the Federal Reserve’s caution on interest rate adjustments and statements from Fed Chair Jerome Powell about waiting for greater clarity before making any moves added further pressure on the U.S. dollar and benefited gold’s rally.
Bullish Outlook for Gold
Picture: XAUUSD retraces slightly from the high of 3357.72, testing support near 3340, as seen on the VT Markets app.
XAUUSD decreased by 0.09%, closing at 3340.13 after opening at 3343.14. The pair saw a steady rise earlier, reaching a high of 3357.72 before retracing slightly and closing near 3340.13.
The moving averages (MA 5,10,30) suggest a neutral trend, with the short-term moving averages hovering around the longer-term ones. This indicates some consolidation or indecision in the market. The MACD (12,26,9) is also showing a weakening histogram as the MACD line (blue) is approaching the signal line (yellow), indicating a potential slowdown in the current bullish momentum.
With a high of $3,357.72 and closing at $3,340.13, gold is on track to continue benefiting from geopolitical risks and market volatility. Traders are pricing in potential rate cuts by the Fed, which could support gold prices further.
