Archived Article This article was published more than 5 months ago. The market data, prices, forecasts, and analysis were accurate at the time of publication but may have changed since then. Please use this article for historical reference only and refer to our latest content for current market information.
- US President Donald Trump will announce additional tariffs on Monday as China's counter-tariffs start, setting up gold price to skyrocket.
Gold price rose to within touching distance of $3,000 per ounce on Monday as investors continued to cushion their portfolios against the shocks created by unfolding global tariff wars. The commodity has been on a strong upward trend since mid-December 2024 and has gained 10.6% year-to-date.
XAUUSD traded at $2,905 at the time of writing, with its gains at 1.5% on the daily price. China’s counter-tariffs against the United States kicked off on Monday, imposing 25% charge on imports worth about $20 billion. The US previously had 10% tariffs on $420 billion worth of Chinese imports.
The tariff war has gone a notch higher after US President Donald Trump imposed a 25% tax on steel and 10% on aluminium. In addition Trump said of the weekend that he would announce new tariffs today. The world’s two largest economies have yet to signal a commitment to resolve the impasse, a factor that could see the tariffs linger for a longer time.
Gold price rise has defied a decline in the US unemployment rate in January, underlining a strong upward trend. The rate reduced by 0.1% to 4.0% , signaling a stable economy. However, Non Farm Payrolls (NFP) numbers missed forecast projections, coming at 143k versus 169k.
Gold Price Prediction
Gold price pivots at $2,980 and the upside will prevail as long as action stays above that level. The commodity will likely meet the first resistance at $2,910. An extended control by the buyers will break above that level and potentially test the next barrier at $2,930.
On the other hand, breaking below $2,888 will signal a shift by the momentum to the upside. In that case, the XAUUSD pair is likely to find the first support at $2,868. Also, a stronger downward momentum will break below that level and invalidate the upside narrative. Furthermore, such momentum could extend the decline and potentially test $2,845.
