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Escalating Trade Tensions Trigger Market Jitters
The global economic outlook darkened following the latest round of U.S. tariffs—averaging 10% across all imports—with Chinese goods hit hardest at 54%. China responded with 34% tariffs on U.S. products.
“These tariffs are not coming off anytime soon,” said U.S. Commerce Secretary Howard Lutnick. Investors rushed to raise cash, with some liquidating gold positions to offset equity losses, temporarily weighing on bullion prices.
Central Banks Continue Strategic Gold Accumulation
While short-term sentiment remains mixed, long-term fundamentals remain supportive. The People’s Bank of China increased its gold holdings for a fifth consecutive month. According to the World Gold Council, global central banks added 39 tonnes of gold in February, highlighting a continued shift away from dollar-denominated assets.
Outlook: Cautious Optimism with Technical Resistance Ahead
While gold’s rally reflects safe-haven demand, analysts warn of limited upside unless prices break convincingly above the $3,080 resistance level. Technical momentum remains fragile as traders weigh profit-taking and global policy uncertainty.
Like gold, silver remains vulnerable to broader market swings and a potential shift in Fed policy tone.
Short-Term Forecast
Gold remains range-bound below the 50 EMA, with key support at $2,972 and resistance at $3,087. Silver’s recovery lacks momentum, facing resistance at $30.55 and risk of a pullback.
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