Key Points:
- Gold slips to $3,327.49/oz in holiday-thinned Asia trading after setting fresh record highs earlier this week.
- Demand for gold continues amid uncertainties surrounding U.S. trade policies.
- Market focus on U.S.-China tariff tensions and upcoming U.S. tariffs on critical minerals.
- Potential demand for gold may increase as global geopolitical tensions intensify.
Gold Takes a Breather Amid Ongoing Tariff Uncertainty
Gold (XAUUSD) prices experienced a slight pullback on Friday, settling at $3,327.49 after a strong rally earlier this week, driven by continued uncertainty surrounding U.S. trade policy. The retreat was influenced by a slightly firmer U.S. dollar (USD) but ongoing demand for safe-haven assets remains high.
Gold traders could continue to react to new tariff developments as they unfold. Potential U.S. tariffs on critical minerals, pharmaceuticals, and semiconductors are expected to drive further demand for gold, despite signs of overextension in the recent rally.
Asian demand may face some pressure due to high gold prices, which could curb physical purchases in India and China. Additionally, Japan-U.S. trade talks could affect gold markets in the coming weeks.
Technical Outlook
Picture: XAUUSD consolidates near support at 3283.99 after testing resistance at 3357.72, as seen on the VT Markets app.
XAUUSD decreased by 0.47%, closing at 3327.49 after opening at 3343.14. The pair saw a steady decline, reaching a low of 3283.99 before recovering slightly to close near 3327.49.
The moving averages (MA 5,10,30) reflect a mixed trend, with the shorter-term moving averages crossing below the longer-term ones. This indicates that there is downward pressure, but the market has recently shown some signs of recovery. The MACD (12,26,9) confirms this, as the MACD line (blue) has crossed the signal line (yellow) to the upside, suggesting a potential shift in momentum.
Key levels to monitor include 3357.72 as immediate resistance and 3283.99 as support. A break above resistance could signal a potential continuation of the upward movement, while a drop below support could suggest further bearishness.
Gold prices are expected to remain volatile as trade tensions and potential new tariffs continue to influence market sentiment. While the recent rally faces some resistance, demand for gold as a safe-haven asset remains strong amid geopolitical uncertainties and economic policy shifts.
