Gold Prices Hold On To Gains Amid Escalating Trade Tensions
Gold (XAU/USD) prices maintained their positive bias through the first half of the European session on Wednesday (3/26) and traded above the $3,025 level, albeit lacked bullish conviction. Uncertainty over US President Donald Trump’s so-called reciprocal tariff announcement on April 2 turned out to be a key factor that continued to support the safe-haven bullion. Additionally, the Federal Reserve’s (Fed) forecast for two 25 basis point interest rate cuts by the end of this year further benefitted the non-yielding yellow metal.
However, the emergence of some US Dollar (USD) buying, following the overnight pullback from near three-week highs, held traders from placing any aggressive bullish bets around Gold prices. Additionally, a generally positive risk tone helped cap gains for the XAU/USD pair. Traders now look forward to the US Durable Goods Orders data for some impetus, though the market focus will remain on Friday’s release of the US Personal Consumption Expenditures (PCE) Price Index.
Source: FXStreet