Gold News: Gold Market Sees Bid as Trump Escalates Tariffs, Eyes $3365.92 Breakout

Gold Edges Higher as Trump’s Trade War Heats Up

Gold prices are ticking higher Friday as traders weigh fresh trade war escalations and the Federal Reserve’s dovish lean, with XAU/USD holding above key pivots while safe-haven demand underpins bids.

At 10:34 GMT, XAU/USD is trading $3345.22, up $21.21 or +0.64%.

Trump’s New Tariffs Lift Safe-Haven Demand

U.S. President Donald Trump’s fresh round of tariffs—35% on Canada, 50% on Brazil, and 15%-20% planned on most trading partners—has reinvigorated demand for gold as a safety play.

The moves follow prior copper tariffs and threats against the EU, keeping traders wary of supply chain disruptions and retaliatory measures from trading partners.

The Canadian dollar slipped 0.22% while the Brazilian real dropped 2% this week, reflecting broader trade concerns that have lifted XAU/USD demand on dips.

Federal Reserve Signals Rate Cuts, Supporting Gold Prices

Federal Reserve Governor Waller signaled potential rate cuts at the upcoming policy meeting, with San Francisco Fed President Daly noting that two cuts remain possible this year.

Lower rates typically support non-yielding gold, and Fed dovishness has provided a floor under XAU/USD despite stable labor market data.

Weekly U.S. jobless claims fell to 227,000, below expectations, reinforcing labor resilience but not enough to derail the Fed’s easing bias.

Treasury Yields Steady as Traders Assess Economic Signals

Treasury yields were little changed with the 10-year at 4.346% and the 2-year at 3.87%, reflecting cautious optimism on U.S. economic strength while traders hedge with gold due to geopolitical risks.

The dollar index rose 0.2% to 97.79, heading for its best weekly gain since February, adding some headwinds to gold but failing to shake off the metal’s safe-haven appeal under trade war stress.

Gold Prices Forecast: Can Bulls Breakout Above $3365.92?

Gold buyers are defending the pivot at $3310.48, pushing XAU/USD above its 50-day moving average at $3325.60. Immediate resistance sits at $3347.97 and the $3365.92 minor top. A clean break above these could trigger acceleration toward the June 16 high at $3451.53 and the record $3500.20. However, a sustained drop below $3310.48 would signal weakness, with potential extension down to $3244.41-$3228.38.

For now, gold’s reaction around the 50-day moving average will determine near-term direction, but escalating trade war tensions and potential Fed rate cuts keep the broader gold prices projection tilted bullish, with traders watching for a break above $3365.92 to confirm upside momentum in the current safe-haven bid environment.

More Information in our Economic Calendar.