Gold prices rose sharply on Wednesday, buoyed by escalating global trade tensions, a weakening U.S. dollar, and turmoil in the Treasury market. Spot gold is now testing resistance near $3,062.20, with traders watching for a potential breakout. On the downside, the 50-day moving average at $2,953.12 remains the key support level and a critical line for bearish acceleration if breached.
Safe-haven buying intensified after U.S. President Donald Trump’s sweeping reciprocal tariffs took effect. The measures included a 104% duty on Chinese imports and new levies on goods from more than 180 countries. China responded with 34% tariffs on U.S. goods, while Canada imposed 25% duties on American vehicles.
All regions saw inflows into #goldETFs in the first quarter, with North America leading. Get more data in our new report here: https://t.co/PyvpYmPZoJ pic.twitter.com/xjsuVByW47
— World Gold Council (@GOLDCOUNCIL) April 9, 2025
China’s central bank reportedly instructed major lenders to reduce dollar purchases, which may reflect efforts to curb yuan depreciation.
What's been driving #gold lately, and what could we expect to come? Find out in our latest #GoldMarketCommentary, out now: https://t.co/wWfDUyF6Fq pic.twitter.com/GsQ6T7xJ7B
— World Gold Council (@GOLDCOUNCIL) April 8, 2025
Customs began collecting tariffs on 86 countries Wednesday, further fueling concerns of a global economic slowdown and recession. The renewed trade war backdrop has investors hedging risk with gold. The U.S. dollar index fell 0.7%, making gold more attractive to non-dollar holders.
Global Commodities Update | Oil 🛢️ crashes to 4-year lows as US slaps 104% tariffs on China.
Gold 🪙 shines on safe-haven demand, up 13% YTD.
Copper 📉 extends losses amid recession fears & tariff heat.#Brent #WTI #Gold #Copper #CommodityMembers #Markets pic.twitter.com/16ulPbFBpI— ET NOW (@ETNOWlive) April 9, 2025
Spot gold nears key resistance level
As the greenback weakens and global trade uncertainty rises, gold benefits from its safe-haven status and strong international demand.
U.S. Treasury yields spiked as markets reacted to weak demand at Tuesday’s 3-year note auction. The selloff is raising red flags over Treasuries’ reliability as a traditional safe haven. Deutsche Bank strategist Henry Allen noted that the severity of the bond rout is fueling speculation the Federal Reserve may be forced to act to stabilize financial conditions—possibly through an emergency rate cut.
With nearly 60% of market participants now pricing in Fed easing as early as May, the outlook favors gold. Zero-yield bullion tends to outperform in falling-rate environments, particularly when confidence in other safe assets erodes. Gold has gained over $400 year-to-date, hitting a record high of $3,167.57 on April 3.
According to the World Gold Council, gold-backed ETFs saw their strongest quarterly inflows in three years. While CPI and PPI data due later this week may add short-term volatility, the broader setup remains bullish. Elevated geopolitical risk, Fed policy uncertainty, and weakening demand for Treasuries all indicate sustained gold demand.
A firm break above $3,062.20 could trigger renewed momentum toward new all-time highs.