GOLD continues to recover, tariff war changes unpredictably

International XAUUSD continued to rise, boosted by a slight decline in the US Dollar and US Treasury yields. At the same time, investors are closely monitoring the developments in trade negotiations as US President Trump expands the tariff war.

As of the time of writing, spot XAUUSD increased by 0.3% to 3,333 USD/oz. The general weakness of the US Dollar, the decline in US Treasury yields and renewed concerns about the escalation of the trade war have helped stabilize gold prices.

On Thursday evening (July 10) local time, US President Donald Trump once again increased pressure on trading partners. He announced that he would impose a 35% tariff on imported goods from Canada, and the USD/CAD exchange rate rose sharply in the short term.
Trump posted on his social media platform Truth Social that a 35% tariff would be imposed on imported goods from Canada, effective from August 1, 2025.
It is still unclear whether the current exemptions for goods traded under the United States-Mexico-Canada Agreement (USMCA) will be extended or terminated.
Due to the impact of escalating trade tensions, spot gold prices also rose by more than 10 dollars in the short term at the beginning of the Asian trading session on Friday, and the current high price of gold has reached around 3,336 USD/ounce.

In an interview with NBC News on Thursday, Trump said he was also considering imposing a flat tariff of 15% to 20% on most of his trading partners, adding that the exact tariff rate was being worked out. The current flat tariff rate is 10%.

Trump sent letters to trading partners this week, announcing that the new tariffs would take effect on August 1 if they could not negotiate more favorable terms. He is expected to send letters to European Union member states soon.
Trump sent the first batch of tariff letters to 14 countries, including Japan and South Korea, on July 7, with tariffs ranging from 25% to 40%. He also said he would send more similar letters this week.

Minutes from the Fed's June 17-18 meeting showed that only a "few" Fed officials thought a rate cut was possible as early as this month, while most preferred to hold off until later in the year due to inflation concerns caused by Trump's tariffs.

The Federal Open Market Committee (FOMC) voted unanimously to leave interest rates unchanged at its June meeting. The next policy meeting is scheduled for July 29-30.

Markets will focus on progress in Trump's tariff negotiations, key US economic data and speeches by Federal Reserve officials later in the day for fresh trading direction for gold prices.

Technical Outlook Analysis XAUUSD
Gold has had 2 sessions of recovery from the area around the 0.382% Fibonacci retracement, but the temporary upside momentum is still limited and does not qualify for a new bullish cycle.

In the short term, the EMA21 with the 0.236% Fibonacci retracement will act as the nearest resistance, if gold takes the price action to break above the 0.236% Fibonacci retracement level it will qualify for a new bullish cycle with the target then being around $3,400 in the short term, more so than $3,430.

On the other hand, with the current neutral trend, once gold is sold below the 0.382% Fibonacci retracement level again, it will have conditions to decline, and the target then is around 3,246 USD in the short term, more than the 0.50% Fibonacci retracement level.

The RSI index is hovering around 50, also showing that the market sentiment is still hesitant to have a specific direction.

During the day, the sideways trend of gold prices will be noticed by the following positions.
Support: 3,300 - 3,292 USD
Resistance: 3,340 - 3,350 - 3,371 USD

SELL XAUUSD PRICE 3388 - 3386⚡️
↠↠ Stop Loss 3392

→Take Profit 1 3380
↨
→Take Profit 2 3372

BUY XAUUSD PRICE 3296 - 3298⚡️
↠↠ Stop Loss 3292

→Take Profit 1 3304
↨
→Take Profit 2 3310