On Thursday (April 3rd), as Asian markets opened for trading, Trump’s bombshell announcement of a slew of tariff measures sent shockwaves through the market. In an instant, a wave of risk – aversion swept across, propelling the spot gold price to a staggering $3,167.60 per ounce. This not only marked a new all – time high but also set a new benchmark in the gold market’s history.
However, the market’s exuberance was short – lived. Fearing potential uncertainties in the aftermath of these policy changes, a significant number of profit – oriented investors decided to cash in on their gains. Their aggressive selling pressure caused the gold price to reverse course sharply. Before long, the price turned negative for the day, slumping to a low of $3,054.19 per ounce.
As the trading day wore on, investors adopted a wait – and – see approach. The growing consensus was that US tariff policies would likely throw the global economy into disarray. In such a climate of uncertainty, gold’s traditional role as a safe – haven asset reasserted itself. Buoyed by this renewed interest, bargain – hunting buyers flocked back into the market, driving the price back up to $3,125 per ounce.
Macroeconomic data and geopolitical dynamics will continue to influence the direction of the gold market. Key data such as the unemployment rate and non-farm payroll employment figures that the US Department of Labor is about to release are highly likely to affect the Federal Reserve’s monetary policy stance, which in turn will impact the gold market. If the data indicates a weakening of the US job market, the Federal Reserve may consider easing its monetary policy. This will undermine the US dollar and enhance the attractiveness of gold to investors.
At the same time, there are still uncertainties in the global trade situation. Countermeasures taken by other countries against the US tariff policies may further intensify trade frictions and increase the uncertainty of the global economy. In such an environment, as a safe-haven asset, gold is expected to attract more capital inflows.
From the perspective of technical analysis and the price trend of gold, the price level of $3,100 per ounce has become an important support and resistance level. If the gold price can firmly stay above this level, it may attract more bulls to enter the market, driving the price towards higher targets. Conversely, if the price breaks below this level, the bears may take the initiative, triggering a new round of selling. In addition, the performance of gold mining stocks is also worthy of attention. They not only reflect the short-term fluctuations in the gold market but are also affected by the operational conditions of mining companies themselves and the impact of geopolitics on mining production, forming a linkage effect with the gold price.
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