Gold price closed the week on a high note, ending Friday’s trading session at $2,237 with +1.97% in daily gains. The commodity is likely to stay on the ascending trajectory on escalating trade tariff war between the United States and China. Gold rose to new all-time highs of $3,245 in the earlier hours of trading as traders sought its safe haven protection despite US President Donald Trump’s suspension of high tariffs for 90 days except China, Canada and Mexico.
China raised its tariffs against the United States to 125% in retaliation to the latter’s 145% tariffs announced earlier. This has raised the prospect of an extended hardline stance between the world’s top two largest economies. Meanwhile, the DXY Index, which measures the dollar’s strength against six of the most popular currencies, declined to 99.014 on Friday; the lowest level in three years.
Trump’s tariff war has added downward pressure on the US dollar, underlined by recession fears. That sentiment was evident in the US treasury bond market on April 4, when yields on benchmark 10-year US Treasury bonds declined to 3.80%, the lowest in six months. A repeat of that in the coming days is not out of the question, especially in the face of the dark cloud of trade tariff uncertainty. That will add pressure on the US dollar and provide propulsion to gold price.
Gold Price Prediction
Gold price pivots at $3,228 and the upside will prevail if action stays above that level. The first resistance will likely be at $3,240. Breaking above that level will signal an extended control by buyers, and the resulting momentum could push the XAUUSD pair higher to test $3,250.
On the downside, the price could go to the downward trajectory if it breaks below $3,228. That could see the first support established at $3,216. The upside narrative will be invalid if the price breaks below that level. Furthermore, an extended control by the sellers take the price lower and potentially test $3,207.
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