Gold Prices Surge as Trump Tariffs Ruled Illegal – What This Means for Investors
Gold prices have been on a downward trend since the end of last week, but a recent ruling that most of Trump’s tariffs are illegal sparked a sell-off in the ‘defensive asset’. However, the sell-off was short-lived as the US President’s administration appealed the decision.
Despite the volatility, gold managed to stay within this year’s pattern and was actively bought on an intraday dip below $3250, pushing the price away from the 50-day moving average. The price is currently adding about 2% to the intraday lows, reaching $3310 per ounce. The price has bounced off the 50-day moving average multiple times, forming a sequence of higher local lows.
On the flip side, gold also has three successive lower peaks from the all-time highs in April, forming a line of downward resistance. This resistance line is currently being tested, and a break above the previous highs at $3365 could signal a rise above the historical highs at $3500.
In conclusion, the recent ruling on Trump’s tariffs has caused a surge in gold prices, presenting both opportunities and risks for investors. Keeping an eye on key resistance levels and historical highs can help investors make informed decisions in this volatile market.