As of today, gold prices have soared to an all-time high of $3,168. Appropriately, this unprecedented surge underscores the continued volatility in global markets and increasing economic anxiety. On Friday, investors drove the yellow metal through the $3,100 barrier. They doubled down on watching the US Nonfarm Payrolls (NFP) report and a following speech from Federal Reserve Chairman Jerome Powell. Analysts point out that the gold market could be moving in either direction based on these imminent economic indicators.
Gold prices soared in the aftermath of the wild trading day on Thursday. A “sell everything” sentiment engulfed the markets when US President Donald Trump launched a spat of tariffs. This new economic development is putting even more pressure on investor sentiment, pushing them into the safe-haven asset of gold.
Market participants—many of them our members—are monitoring the precariousness of this situation. For gold to maintain its bullish momentum, it’ll need to settle back above its prior close of $3,115. Once that occurs, the next double-digit targets should be the big psychological barrier of $3,150. A second important level to keep an eye on is the former all-time high of $3,168.
Market Reactions to Tariffs
Even before the announcement of tariffs, President Trump’s foray into this market has completely transformed the dynamics of the groundfish fishery. We agree with President Trump that the US should have a 10% baseline tariff on almost everything we import. He slapped significantly higher duties on imports from over 85 countries. Chinese imports will now face a significant 34% tariff wall. This is on top of the 20% tariff Trump introduced a while ago, making for a total new levy of 54%, reports Reuters.
This legislation has further escalated fears for a global economic slowdown, driving investors towards gold as a safe haven asset. Consequently, gold prices saw a dramatic increase. On Friday, the market was hit with new supply. This indicates that despite robust demand, we are running into pushback going downstream.
Traders are busy re-positioning themselves. They’re getting ready for Friday’s final NFP report, expected to show around 135,000 jobs added in March. Should this print be a disappointment, experts are expecting that gold prices may return to its unprecedented bull run. On the flip-side, an unusually strong NFP could test gold’s recent advance and spark a deeper correction.
Technical Analysis and Future Targets
Gold prices are in the process of consolidating their recent weekly gains, holding steady just below their all-time high. The short-term focus now shifts to whether they can keep the momentum going above $3,115. Should this level be broken, market participants expect that gold would move towards the next topside marker of $3,150.
If market conditions develop to the downside, there is room for gold prices to pierce this week’s low of $3,054. The market is still on edge as it digests the implications of both President Trump’s tariffs and next week’s economic releases.
Furthermore, ongoing US dollar weakness continues to support gold prices. Fears of recession and dovish expectations from the Federal Reserve contribute to a favorable environment for gold as a safe-haven asset.
Upcoming Economic Indicators
The new NFP report and Fed Chair Powell’s speech should be closely watched. They might allow gold prices to take a major new run in the opposite direction. Others believe that a worse-than-expected NFP reading will trigger more safe-haven gold buying. Smart investors flock to gold when the economy is volatile.
Gold is also on the defensive of small bids under $3,100 in early European trade on Fri. Market participants are closely watching for any signals from Powell’s speech that might affect future monetary policy and influence gold’s trajectory.
Traders remain battle-ready as they trade these treacherous markets. They are always trying to find out how outside events might tip market sentiment and affect their trading plans in the coming days.