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Gold price surges past the $3,000 mark, reaching $3,120 on Thursday.
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President Trump unveils a 90-day suspension on reciprocal tariffs to allow room for negotiations.
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If momentum continues into the U.S. session, gold may set a new all-time high later today.
Gold price (XAU/USD) is delivering a strong performance on Thursday, trading around $3,120 at the time of writing — a nearly 5% gain since Tuesday morning. The surge comes after U.S. President Donald Trump announced a 90-day pause on increased tariffs affecting 56 countries and the European Union, which will now face a baseline 10% tariff during ongoing negotiations.
However, Trump simultaneously escalated trade tensions with China, imposing a steep 125% tariff on Chinese imports after Beijing unveiled an 84% retaliatory tariff on all U.S. goods, effective Thursday. These developments have raised fears of a renewed trade war between the world’s two largest economies. Meanwhile, the People’s Bank of China (PBOC) weakened the Yuan (CNY) for a sixth consecutive session, signaling that China may again use currency devaluation as a bargaining chip — a move warned against by U.S. Treasury Secretary Scott Bessent earlier this week.
Daily Market Drivers: Fed Rate Cut Bets Diminish
- The ongoing tariff back-and-forth has fueled global market volatility, prompting investors to seek safe-haven assets like gold. The precious metal is now up 18% year-to-date, supported not only by geopolitical tensions but also by expectations of further monetary easing from the Federal Reserve and robust central bank demand.
- However, recent data from the CME FedWatch Tool shows a sharp drop in expectations for a May interest rate cut, now sitting at just 19.5%, down from 44.6% on Tuesday. For June, the likelihood of a rate cut remains more favorable at 75.3%.
- Further fueling gold’s rally are reports of upcoming stimulus measures from Chinese policymakers, bolstering demand for safe-haven assets amid global economic uncertainty. Long-term investors and central banks continue to view gold as a core portfolio asset, especially as other financial instruments struggle to maintain value during turbulent times, according to Reuters.
Technical Outlook: Eyes on Resistance at $3,167 and $3,180
From a technical standpoint, gold has rebounded strongly from a recent two-day dip, aided by Trump’s tariff delay announcement. However, the pause does not ensure lasting trade resolutions, and tensions may escalate again if significant deals are not reached within the 90-day window.
At the time of writing, gold is testing the first key resistance level (R1) at $3,131, with the current all-time high of $3,167 just above. Should momentum continue, the next upside target lies at $3,180 (R2 resistance), which could serve as a ceiling for the near term.
On the downside, Thursday’s pivot point stands at $3,050, near the March 10 high of $3,057. If this support zone breaks, bearish momentum could take prices down to the $3,000 psychological level, reinforced by nearby support levels at $3,002 and $3,004 from mid-March.
In summary, gold remains well-positioned to climb higher, with both technical and fundamental forces aligned. But traders should remain alert, as geopolitical risks and central bank cues continue to drive sharp swings in price action.
