The price of gold triggers above $ 3,240 as the fears of the trade war intensify and the returns fall

  • Gold triggers as the demand for sure shelter increases by tensions between the US and China and the fall in treasure yields.
  • The threat of Trump tariffs on pharmaceutical products and the Boeing prohibition in China add fuel to market volatility.
  • Mixed US data add uncertainty; The operators now focus on retail sales and Powell’s speech on Wednesday.

The price of gold closed Tuesday’s session in a higher note because operators bought precious metals amid the uncertainty about the tariff plans of US President Donald Trump, which has kept the market participants in suspense. The Xau/USD quotes at $ 3.240, the Troy ounce, winning more than 6.50%.

The precious metal rose sharply towards the end of the New York session on Tuesday, since the yields of the US Treasury bonds continued to fall for the second consecutive day. The fears that President Trump began to impose tariffs on pharmaceutical products deteriorated the mood of the market.

Following in the field of commercial war, China ordered its national airlines to stop the Boeing aircraft deliveries, which added to the poor disposition of market participants.

The US data were mixed, with import prices, keeping moderate. The New York Fed manufacturing index had a better performance than predicted, as well as some of the internal components. However, paid prices increased to expansive territory, and six -month perspectives deteriorated.

This week, gold operators will be attentive to March retail sales together with the speeches of the Fed members, mainly from President Jerome Powell on Wednesday. Investors expect data on housing and initial unemployment applications for the rest of the week.

What moves the market today: the price of gold shoots, while the real yields of the US fall

The 10 -year Treasury performance from the US fell four basic and average points to 4,339%. The real US yu. Three basic and average points fell to 2,149%, as shown by the yields of treasure protected against inflation to 10 years of the US that failed to contain gold prices.

The New York Empire State Manufacturing Index improved to -8.1 in April 2025 from -20 in March, the lowest price since May 2023, compared to -14.5 forecasts. Despite this, reading indicated that business activity decreased while input prices increased.

March retail sales are expected to increase 0.6% to 1.3% intermensual on Wednesday. However, the so -called control group used for the calculations of the Gross Domestic Product (GDP) is expected to fall from 1% to 0.6%, which implies that households are beginning to cut expenses in the middle of an economic deceleration.

Later, industrial production is expected for the same period to contract 0.2% intermensual, below the expansion of 0.7% in February. This could stop a series of positive readings after three consecutive months of contractions observed from September to November 2024.

The monetary market participants had discounted 8 basic relief points towards the end of 2025. The first cut is expected to be in July.

Technical Perspective of Xau/USD: The price of gold remains bullish about $ 3,240 ready to reach a new historical maximum

The upward trend of gold price remains intact with buyers looking towards the level of $ 3,250. A rupture of the current historical maximum (ATH) of $ 3.245 could pave the way to the latter. If those two levels of resistance are exceeded, the next stop would be $ 3,300.

On the contrary, if the Xau/USD falls below $ 3,200, the first support would be the maximum of April 10, $ 376. Once exceeded, the next stop would be the level of $ 3,100.

FAQS GOLD


Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.


Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.


Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.


The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.

Source: Fx Street

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