U.S. Tariffs Incoming: What’s Next for Gold?

Trump's planned tariffs on imports from Mexico and Canada, set to take effect on March 4, along with an additional 10% levy on Chinese products, have heightened concerns about potential countermeasures and escalating trade tensions. As a result, during Monday’s Asian trading session, gold prices surged, as these policies strengthened demand for gold, which is traditionally seen as a hedge against rising costs.

From a technical analysis perspective, the overall trend of the GOLD has been bullish, as indicated by the formation of higher highs and higher lows. However, bearish pressure regained control last week, driving the price downward with significant bearish momentum. The previous candlestick experienced a liquidity sweep and rebounded, managed to close within the swap zone.

Currently, the price is moving within the swap zone of 2854 - 2877. If it manages to close above this level, there is a high probability that the bullish trend will continue, leading to a retest of the previous high. Conversely, if the price fails to hold support within the swap zone, it will indicate that bearish forces have taken control, increasing the likelihood of further downward movement. Therefore, this is a critical level to monitor, as a breakout in either direction will likely determine the trend for the week.