Gold Daily | Spot Gold Dips on Rising Yields Amid U.S. Tariffs and Central Bank Buying

【Latest Gold Price and Recent Trends】

As of the latest update, spot gold slightly declined by 0.1% to $3,331.85, following a volatile session where prices dipped below $3,300 but closed above $3,320. Gold’s recent trend reflects a balancing act between safe-haven demand spurred by new U.S. tariffs and upward pressure from rising U.S. bond yields.

【Technical Analysis】

Gold prices remain constrained within a narrow range on the daily chart, with the 21-day SMA around $3,350 acting as a significant resistance. The 50-day SMA at $3,322 offers support. A breach below the 50-day SMA would negate recent bullish momentum, with further support at $3,297, the 38.2% Fibonacci retracement. Conversely, surpassing the 21-day SMA is crucial for a rebound from recent lows, with resistance at $3,377 and $3,400.

【Market Sentiment and Economic Background】

President Trump’s announcement of 25% tariffs on Japanese and Korean imports has heightened risk aversion, prompting a gold rebound. Meanwhile, the U.S. dollar’s resurgence limits further gold gains, as higher interest rates increase the opportunity cost of holding non-yielding assets like gold. Central banks, including China, are diversifying reserves by accumulating gold, supporting prices amid geopolitical and economic uncertainties.

【Analyst Opinions】

Analysts note mixed reactions to Trump's tariff letters, with restrained safe-haven demand keeping gold in a holding pattern. Higher bond yields and resilient Asian market responses to tariff developments are suppressing short-term upward momentum. Analysts anticipate that the backdrop of geopolitical tensions and monetary policy uncertainty will continue influencing gold’s trajectory, with the upcoming FOMC meeting minutes offering further insight into the Federal Reserve’s policy outlook.