Gold price rose to within touching distance of $3,000 per ounce on Monday as investors continued to cushion their portfolios against the shocks created by unfolding global tariff wars. The commodity has been on a strong upward trend since mid-December 2024 and has gained 10.6% year-to-date.
XAUUSD traded at $2,905 at the time of writing, with its gains at 1.5% on the daily price. China’s counter-tariffs against the United States kicked off on Monday, imposing 25% charge on imports worth about $20 billion. The US previously had 10% tariffs on $420 billion worth of Chinese imports.
The tariff war has gone a notch higher after US President Donald Trump imposed a 25% tax on steel and 10% on aluminium. In addition Trump said of the weekend that he would announce new tariffs today. The world’s two largest economies have yet to signal a commitment to resolve the impasse, a factor that could see the tariffs linger for a longer time.
Gold price rise has defied a decline in the US unemployment rate in January, underlining a strong upward trend. The rate reduced by 0.1% to 4.0% , signaling a stable economy. However, Non Farm Payrolls (NFP) numbers missed forecast projections, coming at 143k versus 169k.
Gold price pivots at $2,980 and the upside will prevail as long as action stays above that level. The commodity will likely meet the first resistance at $2,910. An extended control by the buyers will break above that level and potentially test the next barrier at $2,930.
On the other hand, breaking below $2,888 will signal a shift by the momentum to the upside. In that case, the XAUUSD pair is likely to find the first support at $2,868. Also, a stronger downward momentum will break below that level and invalidate the upside narrative. Furthermore, such momentum could extend the decline and potentially test $2,845.
This post was last modified on Feb 10, 2025, 13:13 GMT 13:13