- A mixed Nvidia outlook and uncertainty over Trump's tariff schedule raise concerns.
- Gold faces strong selling pressure, dropping over 1% on Thursday.
- Despite declining US yields, the precious metal struggles to find support.
Gold prices (XAU/USD) continue to face strong selling pressure, extending this week’s correction to a 10-day low near $2,880 as of Thursday. The latest downturn follows confusion sparked by US President Donald Trump during a cabinet meeting on Wednesday, where he provided unclear details on tariffs, raising uncertainty in the markets.
President Trump added to market uncertainty by stating that tariffs will continue, but not all—only a significant portion. He confirmed that levies on Canada and Mexico will take effect on April 2, alongside reciprocal tariffs. Additionally, a 25% tariff on European autos and other goods was announced, though no further specifics were provided, leaving investors uncertain about the full impact.
Market Movers: Key Updates as March Approaches
- Nvidia (NVDA) Earnings: Nvidia’s quarterly revenue is projected to be around $43 billion, slightly above analyst expectations. However, concerns over tighter profit margins due to the new Blackwell chip rollout, along with broader worries about slowing AI-related spending and potential US tariffs, have created headwinds for the stock.
- Federal Reserve Outlook: The CME FedWatch Tool indicates a 33% probability that interest rates will remain unchanged in June, while the remaining odds suggest a possible rate cut.
- US Economic Data: The second estimate of Q4 US GDP is set for release at 13:30 GMT, with expectations of 2.3% annualized growth. Meanwhile, the preliminary quarterly Personal Consumption Expenditures (PCE) index, a key inflation gauge, is also projected to remain steady at 2.3%, with core PCE at 2.5%.
Technical Analysis: Key Levels to Watch
Analysts had warned of excessive buying activity in Gold earlier this week, as traders jumped into the rally at any price. With the current correction, some traders are facing stop-loss triggers, potentially increasing selling pressure and driving prices toward $2,860.
Key Resistance & Support Levels:
- Upside: A recovery above the daily Pivot Point at $2,912 would signal a buying resurgence. If Gold breaks through, $2,934 (R1) and $2,951 (R2) are the next resistance levels to watch.
- Downside: The previous low of $2,890 is under pressure. A break below $2,873 (S2) could pave the way for a further drop to $2,860.
Gold traders should closely monitor these key levels as price action unfolds.
