Gold Correction Continues
Gold prices continue correct as we move through the back end of the week. The futures market is down almost 3% from recent YTD highs as USD catches a bid today. The current move lower in gold comes amidst ongoing uncertainty around Trump’s trade policy. Having earlier in the week declared that delayed tariffs on Mexico and Canada would go ahead next week, the president has now suggested they might be delayed again until April 2nd. Alongside those comments, Trump has also floated the prospect of a 25% reciprocal tariff on EU goods.
US Data Due
Looking ahead today, traders will be watching incoming US data with preliminary GDP and weekly jobless claims both due as well as durable goods and a slew of further Fed speakers. Recent weakness in US data has seen traders rebuilding near-term rate-cut bets. If we see further weakness today this could curtail the lift in USD, giving gold some support to reverse higher.
Safe-Haven Demand
Finally, gold prices are also being weighed up by a shift in outlook on the Russia-Ukraine war. With Ukraine and the US set to sign a deal on mineral rights, traders ultimately sense that the US will end up offering security guarantees and helping negotiate a ceasefire between the two warring countries. If we see headlines reflecting progress on this situation, gold prices are likely to fall further as safe-haven demand reduces.
Technical Views
Gold
The rally in gold has stalled for now into the bull channel highs and the 2,949.88 level. Price is now fast approaching a test of 2,859.15 support. With momentum studies bearish, risks of a deeper correction are growing, turning focus to deeper support at 2,789.40 as the key pivot bulls need to defend.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.