Impact of US Tariffs on Gold Prices: GOLD CREATES NEW LEVEL TO HIT $3,500

Gold creates new level during Tuesday Asian session to hit a historical high of $3,500, fueled by uncertainties surrounding Federal Reserve independence and U.S tariffs imposed by Trump’s administration. Gold has maintained its ground as a safe haven in the cause of the week. From Wednesday the 9th of April, gold maintained its dominance in the market and has since then done about 17.46%. While on Monday alone, the yellow metal jumped more than 3%, and during Tuesday Asian session the phycological barrier of $3,500 an ounce was tested. As at 12:15pm GMT +4, the yellow metal was up by 1.25% and trading at $3,468.24

US Tariffs impact on Gold: XAU hits $3,500 per ounce for the first time

The recent surge was driven by concerns surrounding the U.S. monetary policy following President Donald Trump's announcement of plans to reform the Federal Reserve alongside the uncertainty fueled by the U.S tariff across board.
Holistically the phycological wall of $3,500 an ounce has been envisaged by analysts. Other things being equal, this level was tested today the 22nd of April 2025.
On Monday, Trump renewed his call for the Federal Reserve to cut interest rates, warning that the U.S. economy could slow if action isn't taken promptly. In response, markets were thrown into risk-off mode and the resulting uncertainty continued to favor the yellow metal, which led trading gold to create new level of $3,500 during the Asian session on Tuesday.

Gold Price Outlook: Key Levels and Technical Signals to Watch

Whilst from technical standpoint, Gold analysis suggest that prices have been surging with bullish dominance evident on the candlesticks. The relative strength index (RSI) and the stochastic are strongly above the overbought levels of 79.26 and 94.16 respectively which could give hints for further retracement. While the pair is trying to catch its breath, sellers might likely push the price towards $3,417 and $3,350 in the meantime and if the momentum persist $3,287 could be a potential target to the downside, further break out of these levels are possible. On the flip side, if the bulls take the center stage, then the resistance at $3,500 would be in view and further break would target $3,550 as per technical analyst.

Fig. 1 XAUUSD, 4H Trading view.

UPCOMING CATALYST:

On the radar this week, there aren’t many drivers, but attention remains on JOLTs, ADP, GDP, Core PCE and the upcoming jobs report next week.