Gold Hits $3,368 as Tariff Shock and Fed Signals Spark Safe-Haven Rally

Gold hits 2 week high at $3,368 as Trump unleashes fresh tariff threats. On Sunday, Trump announced 100% tariff on foreign films and plans to introduce pharmaceutical tariffs in 2 weeks. While details are unclear, the rhetoric has added to global uncertainty.

For investors, this uncertainty has reignited demand for gold – a classic safe-haven asset – as broader portfolios get hit by trade headlines. “Investors are fleeing to gold to hedge against the growing risk environment,” said IG strategist Yeap Jun Rong.

Non-yielding bullion performs well during times of geopolitical and financial stress, especially when central banks pause or reverse rate hikes.

Fed in Focus: Will Dovish Hints Drive Gold Higher?

All eyes are on the Fed’s rate decision this week. The Fed has held rates between 4.25-4.50% since December and markets expect no change. But Fed Chair Jerome Powell’s comments on Wednesday will shape expectations for the months ahead.

According to a Goldman Sachs note, rate cuts are coming: “We expect 3 25bps cuts in July, September and October once labor market data softens.” A dovish pivot would support further gold gains.

Why? Because lower rates reduce the opportunity cost of holding gold, making it more attractive vs yield-bearing assets. Add that to global uncertainty and gold has a strong case for more upside.

Trade Setup: Breakout Watch Above $3,368

Gold is in an ascending channel and has just tested $3,368 – the 1.414 Fibonacci extension. Momentum indicators are bullish and price is above the 50-EMA – a strong uptrend.

Trade Idea:

• Entry: Buy on a close above $3,368

• Stop-Loss: Below $3,342 to manage risk

• Targets: $3,392 (Fibonacci 1.618), then $3,436

This trade setup is based on the idea that once resistance is broken, price will continue in the same direction – especially with volume and trend on its side.

Summary Bullet Points:

• Gold hits $3,368 on tariff fears and safe-haven demand* 100% tariff

• Fed to pause; dovish to add fuel

• Breakout to $3,392 and $3,436

• MACD and 50-EMA