Trump slaps 30% tariffs on EU, Mexico
Kedia Advisory - Gold prices remained virtually unchanged, settling at 99,537, as a stronger U.S. dollar offset safe-haven demand sparked by escalating geopolitical tensions. The Iran-Israel conflict extended into its sixth day, with Israel confirming strikes near Tehran and Iran launching missiles in response. Speculation intensified after U.S. President Trump met with his national security team, raising concerns that the U.S. could enter the conflict, which added a layer of uncertainty to global markets. However, gold’s upside was restrained as investors remained cautious ahead of the U.S. Federal Reserve’s upcoming policy decision, especially amid lingering tariff uncertainties and recent weak U.S. economic data.
In terms of fundamental support, a World Gold Council survey revealed that 95% of central banks expect global gold reserves to rise in the coming year, with a record 43% planning to increase their own holdings. This sentiment aligns with bullish long-term forecasts from major institutions like Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC), both of which project gold could reach $4,000/oz by mid-2026. Despite firm investment flows, physical gold demand in major Asian markets has weakened due to soaring prices. Indian dealers offered steep discounts of up to $63/oz—the highest in seven weeks—to encourage buying after local prices breached the 100,000 mark.
Technically, the market showed signs of fresh selling as open interest rose slightly by 0.12% to 14,950. Gold has immediate support at 99,180; a break below could test 98,815. Resistance is seen at 99,840, and a move above could lead to 100,135.