Gold Prices Fail to Hit Weekly High Despite Tariff Threats

Gold prices failed to reach a fresh weekly high today, falling short of yesterday’s peak above $3030/oz. This comes in the midst of the latest tariff threats by US President Donald Trump, causing uncertainty in the markets.

ETF Flows Reach Record Levels in 2025

Gold exchange-traded funds (ETFs) saw a significant uptick in flows yesterday, adding 23 tonnes of gold in a single trading session. This marks the largest one-day increase since 2022, with total holdings reaching their highest level since September 2023. The current pace of inflows could potentially support higher gold prices in the future.

Despite the strong inflows this year, current holdings are still below the record levels seen in 2020. This leaves room for further additions, especially with ongoing uncertainty surrounding trade policies and tariffs under the Trump administration.

Tariff Talks and US Data Impact Gold Prices

Gold initially benefitted from President Trump’s announcement of upcoming tariffs, but prices dropped after positive US data was released. Orders for durable goods in the US rose by 0.9% in February, exceeding analyst expectations and boosting the US Dollar.

While positive data may weigh on gold prices in the short term, the overall trend of haven demand remains strong. The upcoming US PCE data could potentially lead to a pullback in gold prices, providing buying opportunities for investors.

Technical Analysis and Price Outlook

Technically, gold prices have struggled to close above the $3025 resistance level, leading to a rangebound pattern between $3004 and $3030. A breakout from this consolidation range could result in a significant move in gold prices.

Immediate support levels are at $2982 and $2950, with resistance at $3025-3030 followed by $3050 and $3075. The daily chart for Gold (XAU/USD) on March 25, 2025, reflects this technical analysis.

Source: TradingView

Analysis:

The article discusses how gold prices reacted to tariff threats by President Trump and positive US data, highlighting the impact on ETF flows and technical analysis. Despite short-term fluctuations, the overall trend suggests potential buying opportunities for investors as uncertainty continues to drive gold prices. It’s essential for investors to monitor trade policies and economic data to make informed decisions about their finances.