Gold’s price (XAU/USD) is currently around $3,027, showing positive movement this week. The rise in gold coincides with a surge in copper prices, which reached a new all-time high following the announcement of upcoming copper tariffs by US President Donald Trump.
Concerns over the conflict in Ukraine also affect market dynamics, as a potential ceasefire deal is discussed. Ukrainian President Volodymyr Zelenskiy has expressed readiness to support the ceasefire, though the Kremlin contests additional demands, particularly regarding sanctions on agricultural exports.
Us Consumer Confidence Declines
The US Conference Board Consumer Confidence index has dipped to its lowest level in four years due to worries about trade wars and rising prices. The CME Fedwatch Tool indicates an 87.1% likelihood that the Federal Reserve will keep rates unchanged in May, with a 63.2% chance for a rate cut in June.
Technical analysis shows potential resistance for gold at daily R1 around $3,034 and further up at R2 near $3,049. Support is observed at intraday S1 located at $3,006, with the key $3,000 level acting as a buffer against downward pressure.
Gold’s movements reflect growing bullish momentum, trading around $3,027 following a strong week. Part of this momentum can be attributed to the surge in copper prices, which broke records after President Trump confirmed new tariffs on the metal. The announcement intensified interest in commodities, reinforcing the perception of metals as valuable assets in a shifting trade environment.
Geopolitical And Market Outlook
At the same time, ongoing developments in Ukraine remain a source of uncertainty. Zelenskiy’s willingness to negotiate a ceasefire introduces potential changes in geopolitical risk, though the Kremlin’s resistance to additional conditions—especially those tied to agricultural trade—keeps tensions high. If diplomatic progress stalls, the markets may respond accordingly, with metals acting as a hedge against instability.
Meanwhile, economic sentiment in the US is cooling. The latest Consumer Confidence index from the Conference Board has fallen to its lowest point in four years, driven by trade tensions and inflation concerns. Historically, lower confidence levels tend to dampen economic activity, which could play into expectations for monetary policy. Interest rate forecasts remain key: the CME FedWatch Tool suggests there’s an 87.1% probability of rates staying steady in May, while the odds of a rate cut in June stand at 63.2%. Any alterations in these probabilities will likely affect market sentiment, particularly for gold traders tracking inflation expectations.
From a technical perspective, traders will be watching for resistance around $3,034 (R1), with further upside capped at $3,049 (R2). On the downside, immediate support sits at $3,006 (S1), with the $3,000 level acting as a psychological threshold. A break below this could trigger additional momentum-based selling, particularly if broader economic signals support such a move.
