Gold experienced an increase due to the announcement of 25% tariffs on imported autos by Trump, raising concerns about inflation and lower growth. This environment is expected to support the price of gold in the near term.
As the Federal Reserve maintains its current policies without mentioning rate hikes, the trend could persist upward. Real yields are likely to decline unless a robust growth scare occurs.
Gold Consolidation And Key Levels
Currently, gold is consolidating above the 3000 mark, with buyers aiming for better setups around 2955, supported by a trendline. Conversely, sellers will focus on breaking below said trendline, targeting 2832.
On the 4-hour chart, gold is trading within a range between 3000 support and 3038 resistance. Sellers may enter around resistance, while buyers seek a breakout to achieve new highs.
The 1-hour chart indicates similar strategies for both buyers and sellers. Today’s US Jobless Claims figures will provide further insights, with tomorrow’s US PCE data concluding the week’s economic updates.
We have observed a notable reaction in the gold market following the implementation of 25% tariffs on imported automobiles by Trump. The decision has intensified worries about inflation while also fuelling concerns of a slowdown in economic growth. This combination tends to favour the performance of gold, as investors seek assets that can hold value amidst such conditions. Over the short term, these factors appear to be shaping expectations in a way that supports continued strength in gold’s price.
With the Federal Reserve maintaining its stance and no indication of interest rate hikes, gold has little immediate pressure from rising borrowing costs. If real yields decline further, gold could maintain its appeal. On the other hand, if a genuine shock to economic growth emerges, this could disrupt the current market dynamic. However, absent such an event, any declines in real yields will likely keep gold supported.
For the moment, gold is consolidating above the 3000 level. Buyers are keeping an eye on 2955 as a potential re-entry zone, which coincides with trendline support. If price action moves towards that point, a response from buyers would not be unexpected. Meanwhile, those looking to capitalise on downward movement remain focused on the trendline’s integrity, with attention on a potential drop toward 2832 should it give way.
Gold Range And Market Sentiment
Looking at the 4-hour timeframe, gold is maintaining a well-defined range between 3000 as support and 3038 as resistance. Sellers are positioned to act near the upper boundary, expecting price to struggle at that level. Those anticipating an upward drive will be watching for a decisive break past resistance, which could set the stage for further gains.
Shorter-term setups on the 1-hour chart align closely with this view. The approach remains consistent, with buy-side interest increasing near support while sellers attempt to prevent further upside at resistance. Economic data releases will be pivotal in determining the next move, starting with today’s US Jobless Claims report. Tomorrow’s US PCE data will round out the week, offering additional confirmation of whether inflation trends remain in focus heading forward.
