Gold Daily | Spot Gold Drops 1.57% Amid Profit-Taking but Ends Week Higher on Trade War and Inflation Fears

【Latest Gold Price and Recent Trends】

On Friday, Spot Gold prices plummeted by approximately 1.57%, settling at $2,882.34 per ounce due to profit-taking by investors. Despite this drop, gold prices have increased by about 0.8% this week, driven by concerns over global trade wars sparked by President Trump's proposed "reciprocal tariffs."

【Technical Analysis】

Gold's bullish trend remains intact, though it is experiencing a pullback. The first key support level is at the psychological mark of $2,850 per ounce. If breached, the next support is at $2,790, followed by $2,730. Resistance stands at the historical high of $2,942, with further targets at $2,950 and $3,000.

【Market Sentiment and Economic Background】

There is optimism about gold due to trade tariffs, inflation concerns, and a weakening dollar. Trump's tariffs have instigated fears of a trade war, increasing the demand for gold as a safe haven. U.S. retail sales have significantly declined, suggesting an economic slowdown, but the Federal Reserve is not expected to cut rates until at least September.

【Analyst Opinions】

Peter Schiff warns of accelerating inflation and criticizes the Federal Reserve's inadequate response. He argues that inflation is beneficial for gold, and with declining real interest rates and economic instability, gold prices are poised to rise. Despite short-term profit-taking, the long-term bullish trend for gold remains strong, supported by inflation concerns, tariff policies, and a shift from paper to physical gold.