The price of gold increases 3350 USD because Trump Tariff threat shock

Gold is rapidly gaining from USD 3322, because risk moods increases unthreatening demand.
Trump hits Canada with 35% tariffs, Mulls 15-20% of duties on others.
Traders are preparing for CPI USA and the key FedSpeak before July 19.

Prices of gold rally on Friday by almost 1%, when the market mood changes acidic controversial trade policies imposed by the US President Donald Trump to Canada and threatens to expand their duties to other countries and copper. At the time of writing, Xau/USD trades at USD 3,54 after detachment of daily minima in the amount of USD 3322.

On Thursday, Trump presented 35% of tariffs for Canadian goods, although he maintains exemptions from products that adjacent to the USMCA trade agreement signed in 2020. In addition, he stated that he was planning to impose general tariffs of 15% to 20% on most trading partners.

The economic calendar in the USA is scarce. Fed President, Austan Goologe from Chicago, said that he did not understand the arguments, that the Fed should lower the rates to make the government’s debt cheaper and repeat that the Fed mandate is on the employment and stability of prices.

Next week, the USA will contain a consumer price index (CPI) in Docket Economic in June, retail sales, initial data on the unemployed claims, as well as a lot of Federal Reserve (FED) speakers before the darkening period, which will start on July 19.

Daily Digest Market Movers: Gold and dollar American climbing in tandem at the risk of mood

The price of gold took advantage of the escalation of the trade war, although the dollar remains solid during the week, according to profits of over 0.87%, according to the US dollar index (DXY), the best week from February 2025.
During the trade, US President Donald Trump announced 50% of duties regarding the import of copper and Brazilian products.
Chicago President Austan Goolsbee commented that before April 2, the tariff of the Liberation Day Hard Data on the Economy looked solid. Despite this, there were potential interference and ambiguity that the Fed must solve.
The US CPI will be disclosed in June next week, and the numbers expect by 2.6%, compared to 2.4% in May, every year. Every month, the printout expects at 0.3% compared to 0.1% in the previous month.
The basic CPI is expected to enhance by 2.8% in June, unchanged from May numbers. Each month, spinal inflation expects 0.3% MOM compared to 0.1%.
Further data in the USA is expected. Retail sales in June are expected to remain unchanged at 0%, after immersion in May -0.9%. It is expected that the initial unemployed claims for a week ending on July 12 will fall from 227,000. Up to 225 thousand
On Wednesday, US President Donald Trump emphasized that he would apply 10% of additional tariffs to countries adapting to the anti -American BRICS policy.
Data from the Chicago Board of Trade revealed that market players are watching 49 base points (BPS) in 2025.

Technical prospects XAU/USD: Price rallies in the direction of USD 3350

The resumed gold price resumed when yellow metal increased above USD 3350, which opened the door to further growth. The relative force indicator (RSI) has recently become stubborn, which suggests that the buyers collect grip.

Closing XAU/USD above 3350 USD sets the stage to challenge USD 3,400. The violation of the latter will be revealed by the 3450 USD mark, ahead of the record level of 3,500 USD. On the other hand, if the prices of ores fall in the direction of USD 3300, expect a lower price test. Another level of support would be a fugitive of the 100-day straight movable average (SMA) and 30 June USD 3246, followed by USD 3,200.

Gold often asked questions

Gold played a key role in human history because it was widely used as a magazine of values and an exchange medium. Currently, in addition to gloss and the utilize of jewelry, precious metal is widely seen as a unthreatening resource, which means that it is considered a good investment during turbulent time. Gold is also commonly perceived as protection against inflation and against the cushioning currencies, because it is not based on any specific issuer or government.

Central banks are the largest owners of gold. In order to support their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perceived force of the economy and currency. High gold reserves can be a source of trust in the solvency of the country. Central banks added 1136 tons of gold worth about $ 70 billion to their reserves in 2022, according to world gold data. This is the highest annual purchase from the beginning of records. Central banks from emerging economies, such as China, India and Türkiye, quickly enhance their gold reserves.

Gold has a reverse correlation with the US dollar and the American treasure, which are both the main reserves and safer resources. When the dollar absorbs, gold increases, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. The rally on the stock exchange tends to weaken the price of gold, while the sale in more risky markets favors precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can quickly enhance the EskaLA gold prices due to its unthreatening status. As a homeless resource, gold grows at lower percentage rates, while the higher cost of money is usually burdened with yellow metal. Despite this, most of the movements depend on how the US dollar (USD) behaves when the resource is valued in dollars (Xau/USD). This robust dollar tends to maintain the price of gold price, while a weaker dollar can raise gold prices.