Gold price extended its uptrend on Friday, propelled by growing inclination towards safe haven assets in the wake of renewed trade tariff threats by US President Donald Trump. The yellow metal traded at $3,357 per ounce at the spot market at press time, up by 1% on the daily chart.
President Trump has kicked off a fresh tariff storm, imposing strong double-digit charges against some of its leading trade partners. Earlier in the week, he announced that Japan and South Korea would pay 25% tariffs starting August 1. In addition, Canada faces the prospect of a 35% tariff rate. Also, the Trump administration is lining up 15%-20% tariffs against most of US trading partners. Furthermore, The President imposed a blanket 50% tariff on copper imports this week. This set up threatens to disrupt global trade and the implied risk could propel gold price higher.
Despite the tariff-driven uptick, gold price momentum is limited by a resilient US dollar. The greenback has been on a strong upside since the beginning of July, as per the DXY Index. The Index is on course to record the biggest weekly gain in 2025 and was up by 0.98% on the weekly time frame at the time of writing. Meanwhile, last week’s US Initial Jobless Claims figures came out weaker than expected signifying a strong labour market and reducing the prospect of rushed Fed interest rate cuts.
Gold Price Prediction
Gold price pivot mark is at $3,348 and the momentum favours the upside to continue. That will likely see the first resistance come at $3,361. With the buyers in control, that movement will likely go higher and test $3,371.
On the other hand, going below $3,348 will shift the momentum towards the downside. In that case, the first support will likely be at $3,336. Breaking below that level will invalidate the upside narrative. Furthermore, the resulting momentum could send the action lower and test $3,325.
