• Trump 2.0 Tariff Policies Show Less Aggression Than Feared
  • Gold Benefits from Dollar Decline More Than Safe-Haven Demand
  • Buyers Eyeing Record Highs for Gold Near $2790 and Beyond

As President Donald Trump enters his second term, there are early signs that his trade policies may be less aggressive than initially feared. The markets are closely watching for any developments in potential tariffs and trade wars.

Despite campaign promises, Trump did not issue new tariffs on his first day in office. The recent threat of 25% tariffs on Mexico and Canada starting February 1 was also less forceful than expected. This suggests that a universal tariff on all imports to the US may not be imminent.

The gradual approach to tariffs has weakened the dollar, boosting risk assets and pushing US indices towards record highs. Meanwhile, gold is benefiting from the dollar’s decline rather than safe-haven demand, as it breaks above key resistance levels.

Gold buyers are now looking towards retesting record highs near $2790 and potentially breaking out to $2800 and beyond. A reversal below $2715 could challenge the bullish bias and lead to a pullback towards the 100-day moving average near $2650.

Gold Technical Analysis – XAU/USD Daily Chart

Source: TradingView, StoneX.

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