XAUUSD (Gold) Steady Amid Inflation Concerns and Trade Fears

XAUUSD (Gold) prices held steady on Monday, trading at $3,023.65 per ounce, with a high of $3,027.01 and a low of $3,013.24. Economic concerns in the U.S. surrounding inflation and trade tensions have continued to support gold prices.

Gold’s safe-haven status is bolstered by rising inflation fears as U.S. President Donald Trump’s planned tariffs, due for announcement on April 2, heighten market uncertainty.

Gold’s Supporters—U.S. Economic Outlook, Inflationary Pressures and Geopolitics

The release of U.S. consumer confidence data has further increased worries that inflation may rise, especially in light of President Trump’s aggressive tariff plans. The potential impact of these policies on U.S. economic growth continues to fuel gold’s appeal as a hedge against inflation.

The uncertainty surrounding the U.S. economic future, particularly in relation to tariffs, has made gold an attractive asset for traders seeking protection from market volatility. Ongoing inflation fears and potentially hawkish actions by the Federal Reserve could drive the precious metal to $3200 by September.

Technical Outlook

Picture: XAUUSD (Gold) tests resistance at $3,035.85 after a rally from $3,002.47, as seen on the VT Markets app

XAUUSD (Gold) increased by 0.14%, closing at $3,023.65 after opening at $3,019.40. The session saw a sharp rise, reaching a high of $3,027.01 before closing slightly below that level.

The moving averages (MA 5,10,30) show bullish momentum, with short-term MAs crossing above the longer-term moving averages. This suggests the potential for further upward movement. The MACD (12,26,9) indicates strengthening bullish momentum, as the histogram continues to expand and the MACD line (blue) is well above the signal line (yellow).

Key levels to monitor include $3,035.85 as immediate resistance and $3,002.47 as key support. A break above resistance could signal further upside momentum, while a drop below support could shift the sentiment to a more neutral or bearish stance.

Gold (XAUUSD) remains supported by inflationary pressures and trade-related uncertainties, with market participants awaiting further developments on U.S. tariffs. The uptrend looks poised to continue as inflation expectations rise. However, any more hawkish stance from the Federal Reserve may curb gold’s rally.

As of now, gold’s strong demand for safe-haven assets in the face of geopolitical risks continues to drive price movements. If gold can hold above key support near $3,000, it may target new highs.

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