Gold Nears Weekly High as Traders Look for Safety
Gold prices are going up for the third day in a row. The price is getting close to this week’s highest level. This rise is mainly due to fresh concerns about U.S. tariffs. Former U.S. President Donald Trump has announced new tariff plans targeting trade partners like Canada and copper exporters. These tariffs will start on August 1. Because of this uncertainty, investors are buying gold as a safe place to keep their money.
At the same time, hopes for a quick interest rate cut by the U.S. Federal Reserve have dropped. The U.S. dollar is strong right now, trading close to a two-week high, which can make gold less attractive. Also, the latest U.S. jobless claims came in lower than expected at 227,000. This shows the job market is still strong, reducing the chances of a rate cut soon.
From a technical view, if gold breaks above the $3,340–$3,342 level, it could move up toward $3,360 or even $3,400. But if it fails to rise and drops below $3,326, the next support is around $3,300–$3,283, and in a deeper fall, it might touch $3,248.
Impact:
Gold might rise further if tariff fears grow. But if the dollar stays strong and rate cut hopes fade, gold could possibly slow down or fall slightly.