Gold prices skyrocketed as investors flocked to safe-haven assets amid escalating US-China trade tensions and a sharp decline in Treasury yields. The precious metal jumped over 6.5%, hitting $3,240 per ounce—edging closer to a new all-time high.
Key Drivers Behind Gold’s Rally
1. Escalating US-China Trade War Fears
- Trump’s threat of new tariffs on pharmaceuticals rattled markets.
- China retaliated by halting Boeing jet deliveries, worsening trade tensions.
- Investors fear further economic disruptions, boosting demand for gold as a hedge.
2. Plummeting Treasury Yields Fuel Gold’s Rise
- The 10-year Treasury yield fell to 4.339%, while real yields dropped to 2.149%.
- Lower yields reduce the opportunity cost of holding non-interest-bearing gold, making it more attractive.
3. Mixed US Economic Data Adds Uncertainty
- NY Empire State Manufacturing Index improved slightly but remained in contraction.
- Retail Sales (March) expected to rise, but GDP-linked “control group” may decline—signaling weaker consumer spending.
- Industrial Production forecast to shrink, raising recession concerns.
What’s Next for Gold Prices?
Upcoming Market Catalysts
- Fed Chair Jerome Powell’s speech (Wednesday) – Any hints on rate cuts could impact gold.
- US Retail Sales & Jobless Claims – Weak data may reinforce gold’s bullish momentum.
- Ongoing Trade War Developments – Further tariffs or retaliation could push gold higher.
Gold Price Technical Outlook: Bullish Momentum Intact
- Resistance Levels: 3,250(nexttarget),then3,250(nexttarget),then3,300.
- Support Levels: 3,200(keyfloor),followedby3,200(keyfloor),followedby3,176 (April 10 high).
- A break above $3,245 (ATH) could trigger another rally.
Why Gold Remains a Top Safe-Haven Asset
With trade wars escalating, yields falling, and economic uncertainty rising, gold’s rally shows no signs of slowing. Investors are bracing for more volatility, keeping bullish momentum strong in the precious metals market.
