0Gold Prices Surge Ahead of US Session Following New Tariff Announcements
Gold prices saw a significant rise of over 1.5% on Monday, reaching new highs as President Trump revealed more tariff plans. The precious metal has become a safe haven for traders seeking stability amid growing global uncertainty. With this momentum, gold could quickly reach $3,000 if the current pace continues.
As of now, the price of gold (XAU/USD) has been climbing steadily, surpassing the $2,900 mark, with fresh all-time highs being recorded. This surge follows remarks from US President Donald Trump, who stated that he would announce additional “reciprocal tariffs” on several countries on Tuesday or Wednesday. This decision added to the already tense atmosphere in global financial markets. On Sunday, President Trump also revealed a 25% tariff on all steel and aluminum imports into the US, although no specific dates were mentioned for the implementation.
Amid this, attention now turns to the Federal Reserve, with Chairman Jerome Powell scheduled to give his semi-annual testimony before lawmakers on Tuesday and Wednesday. Traders are keen to hear his views on the US economy, especially since Powell is expected to highlight the resilience of the economy as a reason why the central bank is unlikely to cut borrowing costs anytime soon. Should Powell maintain this stance, it could put downward pressure on gold, as higher interest rates tend to weigh on bullion prices.
Meanwhile, some concerns have emerged in China about the rising price of gold. Reports indicate that several Chinese traders have temporarily halted their gold-buying activities due to the metal’s high cost, according to Bloomberg.
In addition to tariff-related news, President Trump’s mention of reciprocal tariffs, which would raise US import duties to match those of other countries, has also kept traders on edge.
Looking ahead, the CME FedWatch tool suggests there is a 93.5% chance that the Federal Reserve will keep interest rates unchanged in March, with only a 6.5% probability of a 25 basis point rate cut.
Technical Analysis: A Promising Start to the Week
The week began with gold prices already making a strong move, surging by over 1% and hitting new all-time highs. As President Trump’s announcements continue to make waves, the market is pricing in these developments, with gold on track to hit the $3,000 mark sooner than expected. However, traders should be cautious, as quick profit-taking may occur in the near term.
On Monday, the pivot point for gold sits at $2,866, with the first support level at $2,846, followed by $2,832. If the price sees a correction, the $2,790 level could act as a strong support, particularly given its historical significance. On the upside, resistance comes in at $2,881, a level that was broken earlier in the day. Should the rally continue into the European and US trading sessions, gold could test the $2,900 mark and potentially break through to the upside.
With growing volatility and tariff concerns, gold is likely to remain in the spotlight as traders look for a safe haven in these uncertain times.
