Gold prices continued to be driven by U.S. tariff-related news last week. At the start of the week, ahead of the official announcement of the new tariff policy, markets operated largely on risk sentiment, pushing gold up to an early high of $3,149. Following Wednesday’s U.S. trading session, President Trump officially unveiled the latest tariff details, triggering a surge in gold prices to a new all-time high of $3,167. However, the buying momentum failed to sustain, and by the opening of the Asian session on Thursday, gold had already pulled back below $3,150.

Global equity markets began to decline on Thursday, increasing volatility in gold. Prices dropped sharply during the day, hitting an intraday low near $3,060. On Friday, gold saw a dramatic sell-off, falling more than $120 in a single session, with a low of $3,016, and eventually closed at $3,037. The market opened this Monday with a downward gap, briefly dipping to a low of $2,969 at the open, followed by a swift rebound. At the moment, gold is consolidating around the $3,010 level.

Prior to the official implementation of the tariffs, the market was largely driven by risk-on sentiment, pushing gold higher. However, after the announcement, profit-taking emerged. As the tariff measures turned out to be broader and more aggressive than expected, the market immediately shifted focus to concerns over a global economic slowdown. This panic triggered a rapid sell-off across investment markets, with gold prices following suit.

This situation is reminiscent of the 2008 financial crisis, when global markets plunged, causing a liquidity crunch that forced investors to liquidate gold positions for cash. Based on that historical precedent, gold is unlikely to regain upward momentum until equity markets complete their correction, the environment stabilizes, and liquidity returns—at which point gold may resume its role as a hedge against risk.

The uptrend in gold appears to have ended. The current strategy should focus on selling into strength, but traders must remain cautious given the heightened volatility. Close attention should be paid to further developments in tariff policy—any unexpected tariff rollbacks by President Trump could trigger a sharp rebound in gold prices.

This week also brings the release of U.S. inflation data. If inflation shows signs of cooling, it may present another opportunity to short gold at higher levels.

1-hr chart (above) – Gold formed a descending resistance line (1) before last week’s close. The current downtrend still shows signs of acceleration, so the preferred strategy remains selling on rallies.
In the short term, focus on the $3,000–$3,055 range and wait for a breakout before taking further action.

Daily chart(above) > The overall trend has aligned with our expectations from two weeks ago. Referring to the previous breakout and subsequent upward move, the target of $3,140 has already been reached. Currently, gold is still holding above the uptrend support line (2). As long as a downside breakout occurs, the next target to watch would be around $2,875 or potentially lower.

P.To