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Gold prices edged higher on Thursday, rebounding after two days of strong selling pressure.
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U.S. President Trump reversed course on previous remarks, suggesting China could face a new tariff rate within the next two to three weeks.
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With markets unsettled, equities retreated while demand for safe-haven assets like gold picked up, putting investors back in wait-and-see mode.
Gold (XAU/USD) turned positive on Thursday, recovering above the $3,300 mark after two days of sharp selling pressure that followed a peak at $3,500 on Tuesday. The rebound comes as fresh geopolitical tensions and mixed signals from Washington renewed demand for safe-haven assets.
Late Wednesday, U.S. President Donald Trump made additional remarks from the Oval Office, suggesting that China could face a new tariff rate within the next "two to three weeks." He also warned that other nations in ongoing negotiations could be subject to reciprocal tariffs if talks fail to meet U.S. expectations, according to Bloomberg.
Adding to the confusion, U.S. Treasury Secretary Scott Bessent clarified that Trump’s earlier statements were not a unilateral offer to reduce tariffs on China. “Not at all,” Bessent told Bloomberg when asked about a possible de-escalation. He emphasized that the administration is considering a range of issues, including non-tariff barriers and Chinese government subsidies, as part of its broader trade strategy.
Global Market Reactions and SNB’s Gold Gains
- The uncertainty sparked divergent reactions across markets. The Swiss National Bank (SNB) reported a first-quarter profit largely driven by its gold holdings, recording a gain of 6.7 billion Swiss Francs (CHF) from January to March.
- In Shanghai, gold futures posted their largest intraday drop since 2013, as Chinese investors rushed to lock in profits on hopes of an imminent U.S.-China trade deal based on Trump’s earlier comments.
- Despite the volatility, several trading firms reported continued strong demand for gold. “The temporary reprieve from Trump has fizzled out,” said Priyanka Sachdeva, an analyst at Singapore-based Philip Nova Pte. “Investors who missed the dip-buying opportunity earlier this month are now driving the latest rebound.”
Technical Analysis: Gold Faces Resistance at $3,363
From a technical perspective, gold has staged a modest recovery but remains under pressure. Prices briefly tested and were rejected at $3,367—close to the daily R1 resistance at $3,363—indicating a lack of bullish momentum for now.
On the upside, the next resistance level is the R2 at $3,438. On the downside, support is forming around $3,245, which aligns with the April 11 high. Should that level fail, further support lies at $3,236 (S1), followed by $3,185 (S2) and a critical pivot at $3,167, the April 3 high.
