During his first cabinet meeting, President Trump made statements about tariffs that seemed contradictory, stirring up some confusion. These comments have put pressure on gold prices, with the precious metal facing firm selling and profit-taking. Although U.S. yields are falling further, gold has lost its support for the time being.
Ahead of Thursday’s American trading session, the price of gold (XAU/USD) has slipped even further. It’s already seen a more than 1% decline. This downward movement followed some puzzling remarks from President Trump on Wednesday during a cabinet meeting. There, he cast doubt over the specifics of the tariffs – what they would encompass, their timing, and the countries they’d affect.
Trump stated that "tariffs will go on, not all, but a lot of them," and mentioned that levies on Canadian and Mexican imports would kick in on April 2. He suggested reciprocal tariffs should also begin that day and confirmed a 25% tariff on European goods, such as automobiles and other categories, although he provided no additional details.
Daily Digest: Market Movements in Focus
In overnight markets, attention was on Nvidia’s (NVDA) earnings report. The company’s quarterly sales are anticipated to be around $43 billion, just above what analysts predicted. However, their gross profit margins might be under pressure due to the introduction of a new chip design named Blackwell. This comes at an inopportune time, as concerns linger over AI spending slowdowns and potential repercussions from U.S. tariffs, which could further challenge the company.
The CME FedWatch Tool currently indicates a 33.0% probability that interest rates will stay at their present range in June, with the remainder suggesting a potential rate cut.
Today, at 13:30 GMT, the second reading of the U.S. Gross Domestic Product (GDP) for the fourth quarter is due. It’s expected that the annualized GDP will hold steady at 2.3%. Meanwhile, the quarterly headline preliminary Personal Consumption Expenditures (PCE), ahead of the monthly PCE on Friday, is also expected to remain steady at 2.3%. The core PCE figure is projected to come in unchanged at 2.5%.
Technical Analysis: Cautious Optimism or Hold Back?
On Wednesday, a number of analysts flagged that the recent aggressive buying behavior in gold suggested traders were eager to jump in at any price to stay part of the rally. With the ongoing correction, some traders might find themselves squeezed and potentially hit stop losses, increasing selling pressure and possibly driving Bullion lower, perhaps even down to $2,860 today.
For a reversal, the key lies at the daily Pivot Point of $2,912. If gold regains ground above this level, it would suggest that traders are stepping in to purchase on the dip. If gold pushes past this, targets to watch include $2,934 and $2,951, corresponding to the intraday R1 and R2 resistance levels.
Conversely, Tuesday’s low of $2,890 is under threat. A break lower could bring attention to $2,873 (S2 support), which might pave the way for a potential test of $2,860.
XAU/USD: Daily Chart
