XAU – Gold continues to hit new highs, with attention paid to the latest US tax policy announcement

The U.S. dollar moved in mixed territory against its major peers last week as investors weighed the severity of tariffs that U.S. President Donald Trump will unveil on Wednesday. Trump imposed a 25% tariff on imported cars and light trucks last Wednesday that is set to take effect this week, prompting threats of retaliation from governments from Ottawa to Paris, with the United States expected to announce matching tariffs this week. In terms of data, the annualized growth rate of the US gross domestic product (GDP) in the fourth quarter was revised to 2.4%, in line with expectations of 2.3%; while data released last Friday showed that the US core personal consumption expenditures (PCE) price index rose 0.4% month-on-month in February, higher than expected, exacerbating market concerns about stagflation. Separately, a University of Michigan survey showed consumers' 12-month inflation expectations surged to their highest level in nearly 2-1/2 years in March.

Gold prices climbed to a record high last week as safe-haven buying again supported bullion after escalating global trade tensions and a slump in stock markets. In terms of technical trends, after the gold price fell below the 3,000 dollar mark on March 22, it went sideways last week. It should be noted that the lower lows have gradually narrowed upwards, from the previous week's low of $2,999, to last week's $3,002, $3,007, $3,012 to Thursday's low of 3,016. In other words, the gold price not only held the 3,000, but was even accumulating strength to rise again. As a result, the gold price broke through the high last Thursday, that is, it pulled back technically and then started another rise, just like the record high of 2,956 on February 24, and then it adjusted back for a period of time, until it broke through this high on March 13 and rose strongly again! The current target estimate is between $3088 and $3100. If we calculate the range of $58 from the previous high of $3057 to the pullback to $2999, the technical extension range can be to $3115. In addition, greater resistance will be further seen at $3140 and $3160, and the next key point is the $3200. The supporting level looks back at $3065 and $3050, and the next level is $3030. The key is still the $3000 that was held in the recent pullback.

London gold forecast range from March 31 to April 5:
Resistance 3095 – 3126 – 3148 - 3191
Support 3064 – 3042 – 3010 - 2979

London Gold March 31
Forecast early range: 3078 – 3088
Resistance 3100 – 3110 – 3026
Support 3068 – 3055 – 3044

SPDR Gold Trust gold holdings:
March 24 – 929.07 tonnes
March 25 – 929.36 tons
March 26 – 929.36 tons
March 27 – 929.65 tons
March 28 – 931.94 tons

28/3 AM London Gold Fix: $3070.4
28/3 PM London Gold Fix: $3071.6 

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