Gold price rose to one week high on Thursday after President Trump announced a new package of tariffs on imported cars.
New addition to the set of reciprocal tariffs from the world’s largest economy, due to become operational on Apr 2, sent fresh shockwaves through the world and boosted fears of further disruption in global trading, economic slowdown and rise in consumer inflation.
The latest news boosted safe haven demand and further lifted the yellow metal’s price, improving technical picture on daily chart, as fresh extension higher retraced over 61.8% of $3057/$3000 pullback, adding to signals that corrective phase from new record high is likely over.
Strong positive momentum and daily MA’s in full bullish configuration, contribute to bullish near-term outlook.
Bulls cracked Fibo 76.4% barrier at $3043, the last significant obstacle en-route to $3057 record high of last week, though anticipating strong headwinds here.
This may keep the price action in prolonged consolidation, but to remain bullishly aligned while holding above broken Fibo level at $3035 (61.8% retracement) and keep in play dip-buying scenario.
Caution on dips below $3035/30 and potential violation of 10DMA ($3022) which would sideline near-term bulls and risk retest of key $3000 support.
Res: 3057; 3071; 3079; 3093.
Sup: 3035; 3030; 3022; 3007.
