Insights 
VT 
Key Points:
- Gold touches $3,380.92 as Trump announces new tariffs on films and pharmaceuticals.
- Traders eye Wednesday’s Fed decision with rate cuts expected by July.
Gold prices surged to a two-week high on Tuesday, lifted by mounting concerns over fresh U.S. trade barriers and investor anticipation of the Federal Reserve’s policy meeting. Spot gold rose 1.4% to $3,380.92 an ounce in early Asia trade, while U.S. gold futures climbed 2% to $3,389.90. The move comes after President Donald Trump unexpectedly announced a 100% tariff on foreign-produced movies, stoking volatility across asset classes.
Attention now turns to Wednesday’s Fed decision. The central bank is widely expected to hold rates steady within the 4.25%-4.50% range, but forward guidance will be key. Any dovish tilt from Chair Powell could accelerate bullish positioning in precious metals. Goldman Sachs forecasts three 25 basis point cuts this year, beginning in July.
Gold tends to benefit from lower interest rates, as it reduces the opportunity cost of holding non-yielding assets. In an environment of geopolitical friction and uncertain monetary policy, bullion has regained its role as a financial anchor.
Other precious metals also posted gains. Spot silver rose 1.5% to $32.99 an ounce, platinum climbed 1.3% to $971.24, and palladium advanced 0.5% to $945.75.
Technical Analysis
Gold surged from a base of $3222.72 to a high of $3386.99, gaining over 160 points in a strong bullish breakout. The rally gained steam after consolidating along the 30-period MA, with momentum sharply accelerating through $3310, then again past the $3350 resistance level.
Picture: Gold breaks out past $3350, hits $3387 peak before stalling, as seen on the VT Markets app
All moving averages (5,10,30) are stacked bullishly, and the MACD (12,26,9) is showing strong upward momentum with widening histograms and a steep crossover, signalling strong buying pressure. That said, price action near the end of the chart suggests some profit-taking just below resistance at $3387, where a rejection candle has formed.
Key support rests at $3310–$3325 on any pullback. If bulls hold above the 30-MA, the trend remains intact.
Cautious Forecast
If the Fed leans dovish and tariff rhetoric persists, gold may attempt a break above $3,400. Traders should monitor Powell’s comments and labour market data closely in the coming sessions. Risk remains skewed to the upside for bullion as uncertainty lingers.
