Gold sticks to intraday gains near weekly high ahead of US GDP; bullish bias remains

• Gold price regains positive traction on Thursday as rising trade tensions boost safe-haven demand.
• A modest USD pullback from a multi-week top and Fed rate cut bets also back the XAU/USD pair. 
• Traders look to Thursday’s US macro releases for some impetus ahead of the US PCE data on Friday.

Gold price (XAU/USD) maintains its bid tone near the weekly top through the first half of the European session on Thursday and seems poised to appreciate further amid a global flight to safety. US President Donald Trump unveiled a 25% tariff on imported cars and light trucks starting next week. This raises the risk of a further escalation of the global trade war, which tempers investors’ appetite for riskier assets and benefits the safe-haven bullion.

Furthermore, the growing acceptance that the Federal Reserve (Fed) will resume its rate-cutting cycle soon, along with a modest US Dollar (USD) pullback from a three-week high, turn out to be another factor underpinning the non-yielding Gold price. However, hopes for more stimulus from China and an uptick in the US Treasury bond yields could act as a headwind for the XAU/USD pair as traders look forward to the US macro data for a fresh impetus. 

Daily Digest Market Movers: Gold price continues to draw support from trade jitters and weaker USD

• The global risk sentiment took a hit in reaction to US President Donald Trump’s new auto tariffs announced on Wednesday. Adding to this, the uncertainty over Trump’s impending reciprocal tariff next week weighs on investors’ sentiment and revives demand for the traditional safe-haven Gold price on Thursday. 
• The uncertainty over the impact of Trump’s trade policies forced the Federal Reserve to revise its growth outlook downward. Moreover, the US central bank signaled that it would deliver two 25-basis-point interest rate cuts in 2025. This overshadows Wednesday’s upbeat US macro data and weighs on the US Dollar. 
• In fact, the US Commerce Department reported that Durable Goods Orders rose 0.9% in February, while Core Durable Goods, which strips out the volatile transportation sector, increased by 0.7%. The readings were better than consensus estimates and led to the overnight USD move higher to a three-week high. 
• Chicago Fed President Austan Goolsbee told the Financial Times that it may take longer than anticipated for the next cut because of economic uncertainty. If markets start factoring higher inflation then he would view that as a major red flag area of concern for policymaking decisions, Goolsbee added further.
• Adding to this, Minneapolis Fed President Neel Kashkari argued that the central bank has made a lot of progress in bringing inflation down, but will have more work to do to get inflation back to the 2% target. Kashkari also said that he is uncertain about the effect of Trump’s aggressive policies on the US economy. 
• Separately, St. Louis Fed President Alberto Musalem said that there is no urgency for the US central bank to cut rates given the fact that restrictive policy is still needed to ensure inflation falls to the 2% target. He expects US economic growth to remain still decent, while prices may be pushed higher by tariffs.
• Traders now look forward to Thursday’s US economic docket – featuring the release of the final Q4 GDP print, Weekly Initial Jobless Claims, and Pending Home Sales data. This, along with speeches by influential FOMC members, will drive the USD demand and produce short-term opportunities around the commodity.
• The focus, however, will remain glued to the US Personal Consumption Expenditure (PCE) Price Index on Friday, which could provide some cues about the Fed’s future interest rate-cut path. This, in turn, will play a key role in determining the next leg of a directional move for the buck and the non-yielding yellow metal.

Gold price remains on track to retest all-time peak while above the $3,000 psychological mark

From a technical perspective, the bullish resilience near the $3,000 psychological mark and the subsequent move up favor bulls amid broadly positive oscillators on the daily chart. Hence, some follow-through buying should allow the Gold price to aim back towards challenging the all-time peak, around the $3,057-3,058 region touched on March 20. A sustained strength beyond will set the stage for an extension of the recent well-established uptrend witnessed over the past four months or so.

On the flip side, the $3,020-3,019 horizontal zone might now protect the immediate downside ahead of the $3,000 psychological mark. This is followed by support near the $2,982-2,978 region, below which the Gold price could extend the corrective slide further towards the next relevant support near the $2,956-2,954 region. The latter represents a horizontal resistance breakpoint and should act as a key pivotal point, which if broken might prompt some technical selling and pave the way for deeper losses.