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Gold continues to attract buyers above the key psychological level of $3,000. After a slow performance, traders are looking for another attempt at a new high. This movement comes as investors prepare for Friday’s crucial US inflation data. With global markets reacting to economic policies, gold remains in the spotlight as a safe-haven asset.
 

Gold Prices Rise Amid US Tariff Exemptions and Market Uncertainty

Gold prices are experiencing renewed demand due to shifts in US trade policies. The US Dollar pulled back from its three-week high, allowing gold to strengthen. The catalyst for this movement was an announcement from US President Donald Trump, granting a temporary exemption on auto parts imports from his newly imposed 25% automotive tariffs. This decision eased market concerns, reducing demand for the US Dollar and benefiting gold.

However, concerns about an economic slowdown in the US have resurfaced. Investors are assessing the long-term impact of these tariffs, leading to higher demand for gold as a hedge against financial instability. With uncertainty prevailing, gold remains a favored asset among investors seeking stability.

Despite the upward movement, it remains uncertain whether gold can sustain its gains. Recent trading saw limited price action, and upcoming US economic data will play a crucial role in shaping gold’s short-term direction. Additionally, speeches from Federal Reserve policymakers will provide further insights into potential monetary policy changes.
 

Technical Analysis of Gold’s Price Action

The provided chart highlights gold’s bullish momentum, showing a strong upward trend. The price movement follows a classic “cup and handle” pattern, confirming a long-term bullish setup.

Two significant cup formations are visible in the chart, indicating prolonged accumulation phases before strong price breakouts. The first cup formation occurred between 2016 and 2018, leading to a sharp upward trend. Similarly, the second cup, formed between 2021 and 2023, paved the way for the ongoing bullish rally.

(Click on image to enlarge)

Gold is now trading within a well-defined upward channel, marked by parallel red-dotted lines. This channel suggests strong buying interest, with higher highs and higher lows reinforcing the trend. The price has recently surpassed the $3,000 mark, signaling renewed momentum. If the trend continues, gold may soon challenge its all-time high of $3,058.

The upward trajectory remains intact as long as gold stays within the rising channel. However, a break below the lower trendline could signal a temporary pullback. Traders should watch key support levels near $2,800 for potential downside risks.
 

How to Trade Gold During Economic Uncertainty?

The chart below shows a successful gold trade strategy by Gold Predictors. Spot gold was bought at $1,996, with a stop loss set at $1,928. The target price was $3,000, and the trade exited at that level. The price movement followed a cup-and-handle pattern before breaking out. This trade was shared via WhatsApp before execution. The trader secured a profit of $1,004 per ounce. The chart highlights the importance of setting clear entry, exit, and stop-loss levels.

Conclusion

Gold’s price remains bullish as investors react to global economic policies. The recent pullback in the US Dollar has provided support for gold, allowing it to hold above $3,000. Technical analysis indicates a strong uptrend, with gold trading within a rising channel. If the momentum persists, gold may reach new record highs. However, upcoming US economic data will determine whether gold can sustain its gains or face short-term corrections. Investors should remain cautious and monitor key technical levels for further market direction. To receive gold and silver trading signals and premium updates, please subscribe here.

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