- Gold prices exceeded 0.5%, reaching the highest ever high at $3,086.
- As stocks and cryptocurrency are mounted, the market escapes to secure money.
- Gold traders are currently targeting nearly $3,100.
Gold Price (XAU/USD) concluded another record performance this Friday, reaching a new all-time high of $3,086 so far, trading around $3,075 at the time of writing. Bulk is seeing another wave of secure inventory inflows from investors withdrawing their security and crypto positions. From here, the next big psychological target and beat level is $3,100.
Later this Friday, US Personal Consumption Expense (PCE) data for February expired. The overall consensus is a fairly stable number, with monthly core PCE not expected to change at 0.3%, but the headline figures remain fixed at 0.3%.
In the past few days, US (US) inflation concerns have been recovering due to the difficulty of measuring the impact of US (US) President Donald Trump's tariff implementation on inflation. The US economy's recession and risks heading towards a stag are a major concern for investors, and can lead to fairness and bond market movements, leading to further expansion of gold.
Daily Digest Market Mover: Modeling is on high
- Inflation in the undershot forecast for France and Spain this Friday is helping the European Central Bank (ECB) demand more interest rate cuts. The French headline consumer price index rose steadily by 0.9% year-on-year, contrary to analyst forecasts. In Spain, it is a much deeper slower than expected, and is the first country to approach the ECB's 2% target, Bloomberg reports.
- Some fair value modelling reveals that gold is overvalued by 13%, suggesting that further policy uncertainty regarding the implementation of US tariffs has already been taken into consideration.
- On Thursday, US President Donald Trump signed a declaration to implement a 25% tariff on automobile imports and vowed harsh penalties on the EU and Canada if they joined forces “to cause economic harm” on the US, but on April 2, Bloomberg reported, it is quickly approaching the implementation of so-called mutual tariffs.
Technical analysis of gold prices: More calls to seek upward goals
Traders are beginning to throw towels with stocks and crypto, and gold is the hottest place in town. More and more analysts are revising what they are looking for money to a higher level. In other words, the important point of “over-buying” is beginning to grow. While attending a rally still makes sense, at least paying attention to a certain level makes deals more manageable about where to enter, where to make profits, and when to stop it.
As an advantage, the Xau/USD daily R1 resistance appears at $3,072, and has already been tested earlier this Friday. Plus, the $3,086 R2 resistance coincides with an all-time high. The $3,100 mark looks far from there, but even so, I could see the rally moving in at least that direction.
On the downside, the first support considered is a daily pivot point of $3,044, followed by a $3,030 S1 support. Additionally, S2 support is available for $3,002. This is roughly in line with the $3,000 mark psychological level.
Xau/USD: Daily Chart
US-China Trade War FAQ
Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on one end. That means creating trade barriers such as tariffs. This leads to anti-barrier, escalating import costs and thus causing cost of living.
The economic conflict between the US (US) and China began in early 2018 when President Donald Trump set a trade barrier in China, claiming unfair commercial practices and theft of intellectual property from Asian giants. China took retaliatory action and imposed tariffs on several US goods, including cars and soybeans. Tensions escalated until the two countries signed a US-China-1 trade agreement in January 2020. The agreement required structural reforms and other changes to China's economic regime, pretending to restore stability and trust between the two countries. However, the coronavirus pandemic has focused on the conflict. But it is worth mentioning that President Joe Biden, who took office after President Trump, has put in place tariffs and even added taxes.
Donald Trump's return to the White House as the 47th US president sparked a new wave of tension between the two countries. During the 2024 election campaign, Trump pledged to impose 60% tariffs on China after taking office on January 20, 2025. With Trump back, the US-China trade war aims to resume the US-China trade war to affect the mid-term abolition of the global economic landscape, especially as it is directly supplied to the global supply supply, particularly to reduce investment.
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