Gold prices rebound from 3-week low as Trump’s renewed tariff threats boost safe-haven demand

FUNDAMENTAL OVERVIEW:

Gold price (XAU/USD) jumps while equities rebound sharply from their steep declines on Monday and last Friday. The precious metal is trading just above the $3,000 level on Tuesday, buoyed by both technical factors and escalating geopolitical tensions. The intensifying U.S.-China trade spat—fueled by President Donald Trump’s threat of an additional 50% tariff on Chinese imports—is driving safe-haven demand.

At the same time, bond markets remain volatile, with the U.S. yield curve reflecting rapidly shifting rate expectations. On Monday, markets briefly priced in five rate cuts from the Federal Reserve in 2025—an aggressive pivot from the previous one-or-none outlook just a week earlier.

Adding to the uncertainty, Treasury Secretary Scott Bessent revealed that 70 countries have already requested trade negotiations with the U.S. Trump will be directly involved in the talks, though tariffs will stay in place throughout the negotiation process.

Ongoing softness in the U.S. dollar, coupled with rising expectations of interest rate cuts by the Federal Reserve, also lent additional support to gold.

GOLD TECHNICAL ANALYSIS DAILY CHART:

Technical Overview:

Gold is trading within an up channel.

Gold is moving above all the Moving Averages (SMA).

The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Neutral trend.

Immediate Resistance level: 3011.00

Immediate support level: 2955.61

HOW TO TRADE GOLD

Gold initially moved higher but faced rejection, leading to a downside retracement that broke through immediate support and dropped to a key support zone. Currently, the price is holding above that level, showing respect for the zone. If Gold sustains above this area and clears the nearby resistance, further upside momentum could follow.

TRADE SUGGESTION- STOP BUY– 3015.51, TAKE PROFIT AT- 3084.31, SL AT- 2975.86.