- Gold prices attract sellers on Monday's third day.
- Safe risk tones are seen to damage safe haven precious metals.
- Support for Fed rate reduction bets and geopolitical risk Xau/USD pairs is helpful.
Gold Price (XAU/USD) will be traded at a negative bias for the third year in a row, but will be able to comfortably hold the $3,000 psychological mark or the low Friday swing. Concerns about the impact of US President Donald Trump's trade tariffs on the global economy ease the easing behind reports that the Trump administration's mutual tariffs are narrower and less stringent than initially feared. This has proven to be an important factor that boosts investors' appetite for high-risk assets and undermines precious metals in safe inventory.
Meanwhile, the Federal Reserve (Fed) is unable to support the US dollar (USD) to take advantage of its bounce from the months' lowest after last week, as soon as it resumes its rate-cut cycle amid worry about a tariff-driven US economic slowdown. This, along with persistent geopolitical risks, prevents traders from making aggressive bearish bets on non-two gold prices, limiting losses ahead of Flash Global PMI. The focus then shifts to the release of the US Personal Consumption Expense (PCE) price index on Friday.
Daily Digest Market Mover: Gold prices are put under pressure by retreating safe haven demand. The drawbacks seem to be limited
- A weekend report showed that US President Donald Trump is planning a narrower, more targeted agenda for so-called mutual tariffs to take effect on April 2nd.
- The US delegation is in consultation with Ukrainian officials as part of the peace talks and will meet Russian officials on Monday for further consultations. Earlier this month, Trump and Russian President Vladimir Putin agreed to a 30-day suspension of Russia's strike at an energy facility in Ukraine.
- The US dollar was steady near a day and a half high on Friday. This turned out to be another factor in comparing non-two yellow metals.
- Meanwhile, Fed Chairman Jerome Powell said last week that tariffs are likely to attenuate economic growth. Additionally, traders still see the US Central Bank lowering its borrowing costs at its June, July and October monetary policy meetings.
- Israel continues its heavy strike in Gaza, bombing the largest hospital in the southern region, the bomb, and killing Hamas leader Ismail Balkhum. Meanwhile, Yemeni Iran-backed Houtsis launched a ballistic missile in Israel on Sunday, despite successful Israeli air defense.
- Additionally, US forces carried out fresh airstrikes in Sada province, northern Yemen. Additionally, Houthis claimed to have launched new attacks on aircraft carriers at the Red Sea and Ben Gurion airport in central Israel, increasing the risk of further escalation of tensions in the Middle East.
- Traders on Monday will be paying attention to the release of Flash Global PMI. This provides new insights into global economic health and provides some driving force for the product. However, this focus will remain on the US Personal Consumption and Expense (PCE) Price Index on Friday.
Gold Priceble has the advantage while surpassing the key support of the psychological mark over $3,000
From a technical standpoint, subsequent slides could continue to attract some buyers near the $3,000 mark. The above handles should act as important important points. This could prompt fragmented technical sales if it breaks and drag gold prices into 2,982-2,978 regions. The revised decline could further expand to a resistance breakpoint of $2,956-$2,954, and is now supported.
On the back, the highest ever peak of the $3,057-3,058 zone mentioned last week could serve as an immediate hurdle. Given that the Daily Relative Strength Index (RSI) is declining from the area bought, some follow-through purchases are considered new triggers for the Bulls. This sets the stage for an extension of the recently established uptrends seen over the past three months or so.
Customs FAQ
Duties are customs duties imposed on the import or product category of a particular product. Tariffs are designed to help local producers and manufacturers become more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as a tool for protectionism, along with trade barriers and import allocations.
Although both tariffs and taxes generate government revenue to fund public goods and services, there are several distinctions. Customs duties are paid upfront at the port of entry, but taxes are paid at the time of purchase. Taxes are levied on individual taxpayers and businesses, and customs duties are paid by the importer.
There are two ways of thinking among economists regarding the use of customs. Some argue that tariffs are necessary to protect domestic industries and address trade imbalances, while others see them as harmful tools that could raise them high in the long term and could damage the trade war by encouraging The-Tat tariffs.
During preparations for the November 2024 presidential election, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of the total US imports. During this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Therefore, when Trump imposes tariffs, he wants to focus on these three countries. He will also use the revenue generated through tariffs to reduce personal income tax.
