Gold Holds Above $3,125 as Investors Brace for Trump’s “Liberation Day” Tariffs
Gold prices held firm on Wednesday, trading near $3,125 per ounce, just below the record high of $3,149 set the day before.
The move reflects continued demand for safe-haven assets as markets wait for the details of President Trump’s “Liberation Day” trade measures, expected later today.
So far, the lack of clarity around these tariffs has left investors on edge, fueling fears of rising inflation, slowing growth, and renewed trade tensions.
“Safe-haven buying continues to dominate,” said Philip Newman, Managing Director at Metals Focus. “There’s no indication geopolitical uncertainty will ease soon.”
A Mixed Macro Picture Keeps Gold in Focus
It’s not just geopolitics lifting gold. The broader economic picture in the U.S. is playing a big role too. With growth cooling and inflation risks rising—partly due to tariffs—many expect the Federal Reserve to start cutting interest rates later this year. According to the CME FedWatch Tool, markets are currently pricing in 63 basis points of rate cuts by December.
That said, the Fed faces a difficult task. Weakening labor data may support easing, but any inflationary surge caused by tariffs could limit how far the central bank is willing to go.
What’s Driving the Rally?
While today’s policy headlines are grabbing attention, several long-term drivers have been quietly supporting gold for months:
Central banks—especially in emerging markets—have been steadily adding to their gold reserves, creating a strong demand floor.
ETF flows have shifted back into positive territory, reflecting growing institutional confidence.
Rate expectations continue to favor gold, with falling yields making non-interest-bearing assets more attractive.
Global tensions remain high—from instability in the Middle East to political uncertainty in Europe and renewed U.S. trade friction.
Together, these factors are reinforcing gold’s momentum, even as volatility picks up.
Charting the Path: $3,300 in Sight?
On the technical side, gold remains within a strong upward channel. The recent high at $3,149 marks short-term resistance, while initial support comes in near $3,117, the 23.6% Fibonacci retracement level. The 50-day EMA, now at $3,069, continues to rise—another sign that the trend remains intact.
LevelRole$3,117–$3,097Support zone$3,149Immediate resistance$3,300Medium-term target$3,06950 EMA (bullish confirmation)
Unless prices drop below $3,097, the broader bullish structure stays in place. With today’s tariff announcement on deck, traders are bracing for potential swings, but the overall setup still points higher.
Final Thoughts
Gold’s latest rally isn’t just about short-term risk—it’s about deeper shifts in how investors are thinking about safety, policy, and global uncertainty. With geopolitical risk still elevated and the Fed leaning toward rate cuts, gold is likely to stay in favor. Whether today’s policy news adds more fuel or introduces volatility, the case for gold remains strong, especially on any pullbacks.
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