Market Updates

Gold Prices Cool Off After Meteoric Rally: What’s Next for XAU/USD?

Gold prices edged slightly lower on Monday, following an explosive three-day surge that catapulted the yellow metal to new all-time highs. June gold futures are now trading near $3,226.90—down $28.40 on the day—as traders take profits amid a backdrop of global uncertainty and U.S.-China trade tensions.

🚀 Gold’s Record-Breaking Rally: Recap of the Surge

Gold’s powerful uptrend began mid-last week, gaining momentum after President Donald Trump imposed steep tariffs on China. From Wednesday to Friday, gold prices soared by more than $250:

  • April 9: Gold climbed $100.21 (+3.38%), closing at $3,082.95
  • April 10: Another rally of $92.41 took gold higher
  • April 11: Prices closed at a record $3,210.92, with a $62.56 daily gain

This sharp move pushed the total three-day gain to 8.34%, with gold futures touching a record $3,245 during intraday trading.

🏛️ Tariffs Trigger Safe-Haven Demand

The driving force behind this surge is escalating geopolitical risk. President Trump’s tariff offensive—now totaling a 145% levy on Chinese imports when factoring in previous duties—sparked fears of a full-blown trade war. China retaliated with 125% tariffs on U.S. goods.

Gold, a traditional safe-haven asset, has benefited significantly from this turmoil. Since February 4, gold has added more than $320, with most of those gains aligning with major tariff announcements.

🔍 Technical Snapshot: XAU/USD Outlook

Despite today’s pullback, the overall trend remains bullish:

  • Support Zone: $3,195 – $3,200
  • Current Price: ~$3,226.90
  • Next Bullish Target: $3,297
  • Upside Potential: $3,500 within 60 days, if momentum continues

The 14-day RSI shows mildly overbought conditions, suggesting a short-term consolidation may occur before the next move.

📈 What to Watch This Week

  • US-China Trade Headlines: Any shift in rhetoric could trigger sharp gold volatility
  • Fedspeak: Markets are pricing in multiple Fed rate cuts in 2025
  • Economic Data: Watch for U.S. inflation and job numbers that could impact dollar strength

🛡️ Final Thoughts

While today’s dip may seem like a pause, the fundamentals still favor gold bulls. With economic uncertainty, aggressive trade policies, and a weakening U.S. dollar, gold remains one of the most attractive assets for risk-averse investors.

📊 Stay updated with real-time gold trends and forecasts at www.dailyforex.pk – your go-to source for the latest in global commodities.

Hamza Shah

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