$3348 and Counting: Gold's Bull Run Ignites as Tariffs Loom

Gold gained sharply as the Trade war escalates. It hits an intraday high of $3348 and is currently trading around $3345.

Effective August 1, 2025, former President Donald Trump announced a significant 35% tariff on all Canadian imports, marking a major escalation in trade tensions between the U. S. and Canada, with further increases threatened if Canada retaliates. This action fits into a larger plan including possible 15–20% blanket levies on other U. S. trading partners without new agreements, together with already existing sectoral tariffs like a 50% tariff on copper and higher duties on steel, aluminum, and automobile goods. Though Canada is a small source, Trump said that Canada's unwillingness to stop fentanyl smuggling justified his action. While Canadian Prime Minister Mark Carney has promised to defend Canadian workers and put retaliatory actions in place, the White House is warning several nations of new reciprocal tariff rates that could range up to 40%.

According to the CME Fed Watch tool, the chances of a rate pause in the Jul 30th 2025 meeting have decreased to 93.30% from 93.80% a week ago.

Technical Analysis: Key Levels and Trading Strategy
 
Gold prices are holding above the short-term moving average 34 EMA and  55 EMA and the long-term moving averages (200 EMA) on the 4-hour chart. Immediate support is at $3330, and a break below this level will drag the yellow metal to 3320/43300/$3295/$3275/$3245. The near-term resistance is at $3350 with potential price targets at $3385/$3400/43420$3450/$3475/$3500/$3550.

It is good to buy on dips around $3330 with a stop-loss at $3300 for a target price of $3400.