Gold Tops $3,000 as Tariff Tensions Weigh on Dollar, Risks Mount for More Volatility

Gold prices edged back above the $3,000 mark on Wednesday as safe-haven demand returned in response to intensifying U.S.-China trade tensions.

The U.S. dollar slipped, making gold more appealing for international buyers just as President Trump’s sweeping 104% tariffs on Chinese imports took effect.

The move reignited fears of a global slowdown, with investors turning to gold as a hedge against currency devaluation and economic uncertainty. At 12:01 a.m. Eastern, country-specific tariffs were formally implemented. China, refusing to yield, called the measures “blackmail” and vowed to retaliate.

Tim Waterer, Chief Market Analyst at KCM Trade, said:

“The tariff-driven dip in the dollar paved the way for gold to reclaim the $3,000 handle.”

Despite the bounce, gold remains below its April 3 record high of $3,167.57.

Treasury Yields, Fed Outlook Temper Rally

Although momentum favored gold, gains were capped by a rise in the U.S. 10-year Treasury yield, which touched a one-week high. As a non-yielding asset, gold often trades inversely to bond yields.

• The 50-day EMA now acts as resistance at $3,046

• RSI stands at 44, signaling cautious sentiment

• Key support sits at $2,970, followed by $2,940 and $2,907

Investors are also awaiting the Fed’s policy meeting minutes and critical inflation data. Thursday brings the Consumer Price Index (CPI), while the Producer Price Index (PPI) follows Friday—both pivotal in shaping Fed rate expectations.

ETF Demand Signals Long-Term Bullishness

Beyond the charts, fundamentals remain strong. Gold-backed exchange-traded funds (ETFs) saw their largest quarterly inflows since 2022, according to the World Gold Council.

This surge in demand shows that institutional investors are positioning for persistent inflation and potential monetary easing later in 2025.

While near-term technicals show weakness, structurally gold remains well-supported. A daily close above $3,046 could flip sentiment bullish again. Until then, traders remain cautious, especially with escalating geopolitical risk and economic uncertainty in play.

Summary:

• Gold reclaims $3,000 amid tariff-driven dollar weakness

• Rising Treasury yields and inflation data pose short-term hurdles

• ETF inflows point to long-term bullish positioning despite near-term pressure