Tariff Impact
Gold prices are rallying today ahead of a keenly awaited tariff announcement from president Trump. While expectations are split over whether Trump will pursue a more aggressive tariff approach, or take lighter action, gold prices look likely to benefit regardless with the yellow metal expected to see continued safe-haven inflows. A more aggressive approach from Trump today would certainly cause a bigger impact on global markets, favouring a firmer rally in gold prices while a softer set of actions could see upside momentum in gold capped, though higher prices are still expected near-term.
US Jobs Data
Away from Trump’s tariff announcements, traders will also be keeping an eye on incoming US data with the NFP due on Friday. A softer JOLTS number yesterday is raising bearish expectations for the release. If we do geta weaker number, this should fuel a lift in near-term Fed easing expectations. Helping create further support for gold. With that in mind, traders will be watching the incoming ADP print, due later today. If we see a downside surprise this should add to bearish risks into Friday’s release, though tariffs will remain the headline focus today.
Technical Views
Gold
The rally in gold has seen the market breaking out above the 3,039.97 level with price stalling for now into the bull channel highs. While above the 3k mark, and with momentum studies bullish, focus is on a test of the 3,193.77 level next and a continuation of the bull channel.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.