Gold prices are bouncing back, surpassing the $3,300 mark on Thursday, following two days of declines that saw the metal fall from a peak of $3,500 earlier this week. This recovery comes after U.S. President Donald Trump’s comments from the Oval Office on Wednesday, signaling a potential increase in tariffs on China within the next two to three weeks. Trump also warned that countries currently engaged in trade negotiations with the U.S. may face reciprocal tariffs if talks do not proceed as desired, according to reports from Bloomberg.
Meanwhile, U.S. Treasury Secretary Scott Bessent clarified on Wednesday that Trump’s earlier remarks should not be interpreted as an offer to unilaterally reduce tariffs on China. In response to a question about whether there was any intention to de-escalate the trade tensions, Bessent emphatically stated, “Not at all,” adding that the administration is considering a range of factors, including non-tariff barriers and government subsidies provided to China.
Swiss National Bank Profits from Gold Holdings
The Swiss National Bank (SNB) reported a significant profit in the first quarter, largely due to its gold holdings. The central bank announced a gain of 6.7 billion Swiss Francs (CHF) for the period from January to March, as per a statement issued on Thursday. This gain was bolstered by the ongoing demand for gold amidst market volatility.
In China, gold futures mirrored the recent sell-off, marking the largest intraday drop since 2013. Chinese investors appeared to take profits following expectations that a trade deal between the U.S. and China was imminent after Trump’s comments earlier this week.
Despite the downturn, several trading firms indicated that strong buying activity in gold continues. Priyanka Sachdeva, a Singapore-based analyst at Philip Nova Pte, noted, “The temporary reprieve from Trump has fizzled out. Investors who missed the opportunity to buy earlier in April have driven the rally today.”
Technical Outlook: Gold Prices Show Mixed Signals
Gold’s slight recovery on Thursday brings the price back above $3,300 after a significant correction. However, technical traders remain cautious, with the price hitting a ceiling at $3,367 earlier in the day. This level coincides with the daily R1 resistance at $3,363, indicating that upward momentum may face challenges.
From a technical perspective, the daily pivot point at $3,311 was reclaimed during early Asian trading, but the price faced rejection at the R1 resistance. Should the rally continue, gold could test the next resistance level at $3,438. On the downside, the $3,245 mark, established from the April 11 high, serves as a crucial support level, with additional support levels at $3,236 and $3,185. If these levels fail to hold, the price may retreat further to the technical pivot at $3,167.
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