Gold Prices Remain Elevated Amid Concerns Over Trump’s Tariffs

Key factors driving gold’s movement

The precious metal’s stability is closely tied to lingering uncertainty over Trump’s tariffs. After temporarily exempting technology products from reciprocal duties, his administration is now considering similar exemptions for auto parts.

However, the White House heightened tensions on Monday by launching a national security probe into pharmaceutical and semiconductor imports – a move that could pave the way for additional tariffs.

Further supporting gold prices were comments from Christopher Waller, a member of the Federal Reserve Board of Governors, who suggested that interest rates could be cut soon if Trump’s sweeping tariffs remain in place.

Markets are currently pricing in an 86-basis-point rate cut by the end of the year, though most investors expect the Fed to hold rates steady in May.

Technical analysis: XAU/USD

H4 Chart Overview

The market saw an upward wave, peaking at 3,245, followed by a correction to 3,194Today, consolidation is expected around 3,220. A downside breakout could trigger a further correction towards 3,175, after which a rebound towards 3,253 may followConversely, an upside breakout may extend the rally to 3,253, the primary target of this growth waveA subsequent decline towards 3,105 is anticipatedThe MACD indicator supports this outlook, with its signal line at extreme highs and poised for a pullback towards zero

H1 Chart Overview

The market completed a third-wave advance to 3,245, with consolidation now likely beneath this levelA downside exit may initiate a correction towards 3,175, while an upside exit could extend gains to 3,253, where the uptrend may exhaust itselfBeyond this, a deeper corrective decline towards 3,105 is possibleThe Stochastic oscillator aligns with this view, with its signal line above 80 and showing signs of an impending reversal

Conclusion

Gold remains buoyed by geopolitical and monetary policy uncertainty, with technical indicators suggesting near-term consolidation before potential further upside, followed by a corrective pullback.

Disclaimer

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.