Gold’s price reached approximately $2,915 on Tuesday, following a more than 1% increase on the previous day. The rise is linked to US President Donald Trump’s confirmation of tariffs on Canada, Mexico, and China.
In response, Canada announced retaliatory tariffs of 25% on $30 billion of US imports, starting Tuesday. China plans to impose additional tariffs of up to 15% on key US agricultural products, effective March 10.
Us Treasury Yields Decline
US 10-year benchmark yields fell to 4.11% in early trading, marking a low not seen since mid-October. The market’s expectation of a Federal Reserve interest rate cut by June stands at 85.6%, driven by concerns over inflation and economic activity.
Technical analysis indicates tight trading ranges for gold, with daily Pivot Point support at $2,879. Resistance is noted at $2,903 and further at $2,917, while support at $2,866 could be vital to prevent further declines.
Gold’s surge past $2,915 has come on the back of tariff announcements from Washington, leading to retaliatory measures from Ottawa and Beijing. The confirmation of duties on goods from North America and China creates direct consequences for trade costs and profit margins, making commodities such as gold more appealing as investments shift towards safer assets.
These retaliatory moves will not just impact goods directly subjected to tariffs; they could also influence broader supply chains, pricing pressure, and corporate earnings. By introducing a 25% tariff on $30 billion worth of American imports, Canadian policymakers signal a hard stance. At the same time, Beijing’s decision to target major US agricultural exports with a 15% levy is set to create additional uncertainty, especially for sectors reliant on sustained trade stability.
Gold Price Support And Resistance Levels
The effect on US Treasury yields has been immediate—early trading saw 10-year benchmark yields drop to 4.11%, a level that hasn’t been recorded since mid-October. Lower yields make non-yielding assets such as gold more attractive, adding to demand. Meanwhile, bond markets appear to be locking in expectations for monetary policy adjustments, with rate cut probabilities exceeding 85% by June. That shift is largely due to concerns over economic activity and persistent inflation worries, which policymakers will have to address sooner rather than later.
Examining recent price action, technical indicators suggest that price movements remain confined within narrow bands. Current trading patterns show support forming around $2,879, with buyers stepping in at this level. Immediate resistance sits at $2,903, while a push beyond $2,917 could signal further upward momentum. Conversely, if prices fall below $2,866, we may see an extended retreat, forcing traders to reconsider their positioning.
For those navigating this situation, it is becoming clearer that external macroeconomic developments continue to play a decisive role. With trade measures escalating and monetary policy shifts growing more likely, markets could remain volatile in the coming weeks.
