Gold Prices Face Key Resistance at $2,900—Will Bulls Regain Control?
Gold prices dipped on Tuesday as traders assessed the economic impact of new U.S. tariffs on Canada, Mexico, and China.
Gold prices dipped on Tuesday as traders assessed the economic impact of new U.S. tariffs on Canada, Mexico, and China.
The move, which includes a 25% levy on Mexican and Canadian imports and a doubling of duties on Chinese goods to 20%, has rattled global markets.
Financial analyst Kyle Rodda of 
The future of trading noted that while gold remains in an uptrend, this pullback could deepen into the $2,700s before a fresh rally takes hold. “The weakening dollar and global trade uncertainty provided a strong boost overnight, but we may see further downside before the next leg higher,” Rodda said.
China quickly retaliated, announcing 10%-15% tariffs on U.S. imports starting March 10, along with new export restrictions on certain U.S. entities. These developments have fueled concerns about a prolonged trade war, adding volatility to metals markets.
Inflation Fears vs. Fed Rate Policy—A Balancing Act
Gold, which has gained 10% year-to-date, continues to attract safe-haven demand amid rising inflation risks. However, these same inflationary pressures could force the Federal Reserve to maintain higher interest rates for longer, which typically dampens gold’s appeal.
JPMorgan maintains a long-term bullish view, forecasting gold could reach $3,000/oz by Q4 2025.
The ADP employment report on Wednesday and Friday’s Non-Farm Payrolls (NFP) data could provide fresh insights into the Fed’s next move.
A strong labor market report could reinforce the Fed’s hawkish stance, pushing gold lower, while weaker employment data may revive rate-cut expectations, offering support.
Gold Technical Outlook—Key Levels to Watch
Gold (XAU/USD) is trading at $2,899.60, attempting to hold above the pivot point at $2,893.92. However, the 50-period Simple Moving Average (SMA) at $2,909.34 remains a key resistance level, limiting upside movement.
Immediate resistance: $2,909.34, followed by $2,930.44 and $2,956.85.
Immediate support: $2,859.91, with downside risks extending to $2,832.63 and $2,807.60.
A break below $2,859 could signal further weakness, while a breakout above $2,909 could reignite bullish momentum.
Traders should monitor volume and momentum indicators for confirmation of strength or a potential reversal, as gold remains caught between inflationary tailwinds and Fed-driven headwinds.
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