XAU/USD Current price: $3,049.60
- US President Trump's threat of more tariffs takes its toll on the US Dollar.
- The United States will release PCE Price Index data on Friday.
- XAU/USD maintains its positive momentum near fresh record highs.
The broad US Dollar (USD) weakness helped XAU/USD resumed its advance, with the bright metal reaching a fresh record high at $3,059.67, in the American session.
Markets rushed away from the USD and into safety after United States (US) President Donald Trump came out with fresh tariffs threats. Trump announced new 25% levies on cars and car parts coming into the US late on Wednesday, while adding more tariffs could be imposed to the Eurozone (EU) and Canada. Taxes on vehicles will come into effect on April 3, while those on auto parts will come in May or later.
Canadian Prime Minister Mark Carney said that Trump’s new auto tariffs are “a direct attack” on the Canadian autoworkers. “We will defend our workers, we will defend our companies, we will defend our country, and we will defend it together,” Carney added.
The news negatively affected stock markets, which struggled to attract investors. Asian indexes ended the day mixed, although European ones ended the day mixed. As for US indexes, they also stand in the red.
Investors will now focus on upcoming US data. On Friday, the country will release the February Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve (Fed )'s favorite inflation gauge. Core annual PCE is foreseen at 2.7%, slightly higher than the 2.6% posted in January.
XAU/USD short-term technical outlook
The XAU/USD pair maintains the upward pressure and aims to extend its advance, according to technical readings in the daily chart. The pair develops above all its moving averages, with a bullish 20 Simple Moving Average (SMA) picking up momentum and currently at around $2,968.40. At the same time, technical indicators resumed their advances within positive levels, in line with a higher high ahead.
The near-term picture is bullish. XAU/USD extended its recovery above a now mildly bullish 20 SMA in the 4-hour chart, while the 100 and 200 SMAs advance below the shorter one. Finally, technical indicators head north above their midlines, with uneven upward strength, yet still reflecting prevalent buying interest.
Support levels: 3,030.50 3,0 23.14 2,999.30
Resistance levels: 3,060.00 3,075.00 3,090.00
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD edges lower below 0.6300 on global trade concerns
The AUD/USD pair trades in negative territory near 0.6280 during the early Asian session on Monday. The Australian Dollar weakens due to global trade concerns ahead of a planned announcement on Wednesday by US President Donald Trump on reciprocal tariffs.
USD/JPY weakens further below mid-149.00s; one-week low
USD/JPY retreats further from the vicinity of the monthly peak touched on Friday and attracts sellers at the start of a new week. Hawkish BoJ expectations and the risk-off mood amid rising trade tensions underpin the safe-haven JPY. Moreover, fears of stagflation in the US keep the USD bulls on the defensive and drag the pair to a one-week low.
Gold rises to near record high below $3,100 amid global uncertainty
Gold price gains momentum to around $3,090 during the early Asian session on Monday. The precious metal maintains its uptrend near a record high amid fears of a global trade war triggered by US President Donald Trump's latest tariffs.
Week ahead: US NFP and Eurozone CPI awaited as tariff war heats up, RBA meets
Trump’s reciprocal tariffs could spur more chaos. US jobs report might show DOGE impact on labour market. Eurozone inflation will be vital for ECB bets as April cut uncertain. RBA to likely hold rates; Canadian jobs, BoJ Tankan survey also on tap.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.