From the low of $2,957, gold prices quickly reversed, recapturing the $3,000 level and advancing to a high of $3,017. Demand for safe-haven assets spiked after U.S. President Donald Trump declared new tariffs. This recovery further emphasizes the fragility and volatility of today’s market. Gold prices took a tumble too, with the sharp drop during the sell-off. This rally is overdue for a correction that will lead this price action to $3,020 and a little higher.
Market pundits point to an important support level as gold attempts to mount a comeback. The analysts believe that a local demand zone of between $3,000 and $2,995 is important. Additional resistance is expected between $3,054 and $3,058. Ian’s price action studies and technical analysis spell continued bullish gold days ahead. That may be the case if it manages to rally past current resistance.
Aside from gold’s volatility, the foreign exchange market has experienced significant movement. The GBP/USD exchange rate has built further on this gains towards 1.2800 during the second half of Tuesday. The bullish streak is given additional fuel from a u-turn in U.S. Dollar weakness. On top of that, investors have been catching a favorable change in risk sentiment.
Gold has surged in recent weeks but the precious metal’s upside potential is inherently capped. That’s thanks to a combination of strengthening market fundamentals and increasing U.S. Treasury bond yields. Analysts point to the lack of high-profile headlines indicating a possible easing of trade tensions. This lack of positive news continues to fuel the perception that gold will have a hard time rising with the continued economic upheavals stemming from Trump’s tariff plays.
The Wall Street Journal editorial board took a stand on the toxic trade environment. They encourage other countries to eliminate their tariffs entirely, putting upward pressure on the Trump Administration’s “reciprocal” tariffs. This commentary highlights the myriad of complexities that surround international trade policy and its effects on contrasting commodities such as gold.
Cryptocurrency lawyer James Murphy recently put those words into practice, suing the Department of Homeland Security (DHS) in a D.C. District Court. This legal action follows in a separate but related development. To finally expose the real Satoshi Nakamoto, that notorious bit of alchemy’s pseudonymous creator. This legal action definitely introduces another layer of intrigue to the already burgeoning discussions around cryptocurrencies as they continue to ride the proverbial rollercoaster of market volatility.