Gold price jumps near 5% on Trump’s tariffs 90-day pause  – Crypto News – Crypto News
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Gold price jumps near 5% on Trump’s tariffs 90-day pause  – Crypto News

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  • Gold price edges higher and sprints from sub-$3,000 to $3,120 on Thursday. 
  • President Trump announced a 90-day pause on reciprocal tariffs as negotiations get underway. 
  • Gold could hit a fresh all-time high later in the day if rally persists. 

Gold price (XAU/USD) in a jaw-breaking performance this Thursday in the early trading session, moving around $3,120 at the time of writing. Since Tuesday morning, the precious metal has rallied nearly 5.00%. The main driver for the rally came from United States (US) President Donald Trump, who announced a 90-day pause to higher tariffs on 56 countries and the European Union, which will now be taxed at the 10% baseline rate. 

Trump also hiked levies on China to 125%, effective immediately, after the Asian country announced plans to retaliate with an 84% tariff on all US imports to take effect on Thursday. Those moves are exacerbating concerns that the world’s two biggest economies will keep the trade war escalating. The People’s Bank of China (PBOC), China’s central bank, weakened the Yuan (CNY) for the sixth straight session, despite US Treasury Secretary Scott Bessent’s warning the country not to do so on Tuesday. It looks like Beijing will use the country’s currency as a negotiation tool, as it did in the last trade war.

Daily digest market movers: China cornered

  • The constant back-and-forth of the US administration’s tariff plan has shaken the entire world, as investors scramble to find direction and certainty. That’s generally been supportive for Gold, which is up 18% this year. The yellow metal has also been bolstered by hopes for more Federal Reserve monetary easing and central bank buying, Bloomberg reports. 
  • The CME FedWatch tool shows that the chances of an interest rate cut by the Federal Reserve (Fed) in May have decreased to only 19,5% compared with 44.6% seen on Tuesday. For June, the chances of lower borrowing costs are 75.3%. 
  • Gold is quickly getting back toward recent highs, with today’s boost coming along with a report that Chinese leaders are meeting to discuss stimulus measures. However, there is a bigger picture favoring Gold, which is that other financial assets are failing to retain their value as a safe haven. The precious metal dipped after the 2008 Global Financial Crisis (GFC) and then started a multi-year climb that is still going on. Long-term investors and even central banks are making Bullion a core holding through all market conditions, Reuters reports. 

Gold Price Technical Analysis: Tariffs are still there

The precious metal recovers a two-day loss with a similar sharp move on the back of comments from President Trump and the 90-day delay on tariffs. A delay is just a pause and does not guarantee that deals will be made with all countries. Tensions will brew up again if certain significant trade agreements do not materialize ahead of that 90-day deadline. 

The first cap of the R1 resistance at $3,131 is being tested when writing, followed by the current all-time high of $3,167. Just above there, the R2 resistance at $3,180 will come in as a hard cap on the topside. 

On the downside, the daily Pivot Point comes in at $3,050 on Thursday, with the March 10 high pivotal level at $3,057. If this area does not hold as support, bears can target the S1 support at $3,002, with the March 14 high at $3,004 and the $3,000 psychological level making this area a strong support zone.

XAU/USD: Daily Chart

US-China Trade War FAQs

Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on one end. It implies the creation of trade barriers, such as tariffs, which result in counter-barriers, escalating import costs, and hence the cost of living.

An economic conflict between the United States (US) and China began early in 2018, when President Donald Trump set trade barriers on China, claiming unfair commercial practices and intellectual property theft from the Asian giant. China took retaliatory action, imposing tariffs on multiple US goods, such as automobiles and soybeans. Tensions escalated until the two countries signed the US-China Phase One trade deal in January 2020. The agreement required structural reforms and other changes to China’s economic and trade regime and pretended to restore stability and trust between the two nations. However, the Coronavirus pandemic took the focus out of the conflict. Yet, it is worth mentioning that President Joe Biden, who took office after Trump, kept tariffs in place and even added some additional levies.

The return of Donald Trump to the White House as the 47th US President has sparked a fresh wave of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60% tariffs on China once he returned to office, which he did on January 20, 2025. With Trump back, the US-China trade war is meant to resume where it was left, with tit-for-tat policies affecting the global economic landscape amid disruptions in global supply chains, resulting in a reduction in spending, particularly investment, and directly feeding into the Consumer Price Index inflation.

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