Gold prices rose sharply supported by a fall in the dollar as fears of a potential global trade war mounted, adding to safe-haven demand, following President Donald Trump’s proposal to impose tariffs on steel and aluminium imports.
Trump said Thursday the US will impose a 25% tariff on steel imports and 10% tariff on aluminium. The U.S.’s main trading hit back as the EU was said to be considering setting duties on about $3.5 billion of U.S. imports on iconic U.S. brands including Harley Davidson, Bourbon, Blue Jeans.
Despite the sharp upswing, gold prices were set to post their second-straight weekly loss as the yellow metal struggled to claw back losses sustained earlier this week which followed Federal Reserve chair Jerome Powell’s hawkish comments.
Gold daily chart has formed "Descending channel” pattern. The last session ended up bullish inside the channel. The market is expected to continue in bullish momentum, testing all the way through $1335-1340(30700-30825) levels in the upcoming sessions. Alternatively, if the market breaks below a key support holding at $1320(30325) then it might turn bearish. Resistance holds at $1340(30825).
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