- Summary:
- US President Donald Trump has recently toned down his trade tariff rhetoric and that will likely subdue gains by gold price in the near-term.
Gold price traded downwards on Wednesday as declining tariff risk sentiment continued to interrupt demand. The yellow metal traded at $3,018 at the spot market at the time of writing, down by 0.1% on the daily chart. In addition, the loss brought its losses to 1% in the last five trading sessions. However, action above $3,000 raises the prospect of the coin retesting its record high price of $3,057 reached last week.
US President Donald Trump has toned down on his trade tariff rhetoric in recent days, reducing the risk sentiment in the markets. The world’s largest economy is set to initiate a series of reciprocal trade tariffs from April 2, but Trump expressed willingness to negotiate.
Meanwhile, EU trade commissioner Maros Sefcovic held talks with Trump on Tuesday in an effort to avert an escalation of trade hostilities between the Eurozone and the US. The EU has recently delayed implementation of retaliatory tariffs against US agricultural and industrial goods in reaction to US 25% tariff against aluminium and steel imports.
Elsewhere, India is reported to be working towards cutting tariffs on $23 billion worth of US goods. The new developments in the global market have reduced gold’s risk premium, and will likely continue exerting downward pressure on gold price.
Gold Price Prediction
Gold price pivots at $3,027 and the Relative Strength Index (RSI) favours the sellers to be in control if resistance persists at that level. The XAUUSD pair will likely go lower to find the first support at $3,014. However, an extended control by the sellers will break below that level and take the price to the second support at $3,005.
On the other hand, the momentum will shift to the upside if the price breaks above $3,027. That will likely see the metal meet the first barrier at $3,037. However, a stronger momentum will breach that level, invalidating the downside narrative and potentially testing $3,046.
