GOLD Analysis
Afternoon: Gold’s Resilience Amid Tariff Uncertainty and Profit-Taking Dynamics
Highlights:
- Gold remains resilient above $3,110 amid US tariff fears and profit-taking.
- Key economic data from the Euro Zone and US will impact market sentiment.
- Technical levels: support at $3,078/3052, resistance at $3112/3,132; sell on jump at $3,100 targeting $3,052 with stop loss above $3,112
Overview:
Gold has held above $3,110 and is on track for its fifth consecutive weekly gain, frequently breaking all-time highs amid heightened risk aversion due to US tariffs. President Trump’s announcement of a 10% baseline duty on all imports, with increased tariffs on key trading partners, has sparked retaliatory measures by affected countries. Although gold experienced a decline on Thursday driven by profit-taking and discussions that precious metals might be exempt from these tariffs, the overall upward trend has persisted. The continued rise is bolstered by robust safe-haven demand, anticipation of future rate cuts, central bank purchase activity, and strong interest in gold-backed ETFs.
Investors are now closely watching key economic indicators, including German Factory Orders and French Industrial Production data from the Euro Zone, along with US economic reports such as Average Hourly Earnings, Non-Farm Employment Change, and the Unemployment Rate. These data points will provide further insight into the broader economic landscape and potential Fed policy adjustments.
Technically, gold prices find support at $3,055 and face resistance at $3,132, while Gold MCX is supported at 89,500 with resistance at 90,500. The recommended strategy is to sell on a jump around $3,100, targeting $3,052, and implement a stop loss above $3,112
Support & Resistance Levels:
