Gold’s Wild Ride: Is $3,000 Next? Market Moves & Key Price Levels
Gold (XAU/USD) hit a fresh high of $2,935 per ounce on Tuesday, fueled by trade tensions and anticipation of Federal Reserve Chair Jerome Powell’s testimony on inflation and tariffs.
With investors piling into safe-haven assets, gold’s next big move hinges on macroeconomic cues and key technical levels. Meanwhile, equity markets held steady, with energy and tech stocks leading gains.
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Gold’s Surge: Trade Wars & Fed Uncertainty
Gold’s rally was driven by President Donald Trump’s announcement of 25% tariffs on steel and aluminum imports, reigniting fears of a broader trade war. Investors responded by shifting capital into gold, reinforcing its role as an inflation hedge.
“Gold is responding to trade uncertainty and expectations around Fed policy,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. Meanwhile, the Chinese yuan weakened past 7.30 per dollar, reflecting economic concerns tied to escalating trade policies.
Stock markets remained steady despite tariff worries. The S&P 500 materials index gained 0.5%, led by Nucor (NUE.N) up 5.6%, and Steel Dynamics (STLD.O) up 4.9%. European markets also posted gains, with the STOXX 600 index hitting a record 545.92, driven by a 1.5% jump in energy stocks.
Technical Analysis: Gold Faces Resistance at $2,942
Gold is currently consolidating near $2,918, maintaining a bullish structure within an ascending channel. The 50-day EMA at $2,874 provides a strong support base, reinforcing the ongoing uptrend.
Immediate Resistance: $2,942 (upper channel boundary)
Next Resistance: $2,967, followed by $2,989
Immediate Support: $2,906, with a deeper floor at $2,885
A break above $2,942 could trigger a push towards $3,000, while failure to hold $2,906 may lead to a correction toward $2,885 and $2,859.
What’s Next? Powell’s Speech & Inflation Data
All eyes are on Fed Chair Jerome Powell’s congressional testimony, where comments on tariffs, inflation, and interest rates could drive gold’s next major move. The market currently sees a 50% chance of a Fed rate cut by June, according to the CME FedWatch Tool.
For now, gold’s trend remains bullish as long as it stays above $2,906, with a breakout above $2,942 potentially opening the door to new all-time highs.
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