Gold Daily | Spot Gold Surges 1.90% on Market Risk Aversion Amid Trump's EU Tariff Threats

【Latest Gold Price and Recent Trends】

Spot gold closed at $3357.69 per ounce on Friday, surging by 1.90%, driven by heightened market risk aversion due to Trump's tariff threats against the EU. The price has seen a weekly rise of 5%.

【Technical Analysis】

Analyst Christian Borjon Valencia indicates a bullish momentum with potential testing of the $3400 mark. The Relative Strength Index suggests room for further gains before reaching overbought levels. Key resistance levels are at $3400, $3438, and $3450. If prices breach $3500, the next target could be $3800. Conversely, if prices fall below $3300, they may dip to $3204 and the 50-day SMA at $3199.

【Market Sentiment and Economic Background】

Recent dollar weakness and concerns over U.S. fiscal policy have bolstered gold's appeal as a safe-haven asset. President Trump's tax reforms are expected to exacerbate fiscal deterioration, prompting a shift from U.S. bonds to gold. The dollar index's steep decline enhances gold's attractiveness for foreign currency holders. Additionally, political uncertainties, including a massive tax and spending bill passed by the Republican-controlled House, contribute to gold's allure as a refuge. Moody's downgrade of U.S. sovereign credit highlights growing debt concerns, further supporting investment in gold.

【Analyst Opinions】

Giovanni Staunovo from UBS suggests that Trump’s tax reform is supporting gold prices, driven by fiscal deterioration fears. He notes the rising yields of U.S. 30-year bonds reflect market caution regarding fiscal sustainability, making gold, a safe-haven asset, more appealing.