Gold price forecast XAUUSD turned volatile this week as gold surged to an all-time high of $3,167/oz after former U.S. President Donald Trump’s “Liberation Day” speech. Trump announced new tariffs on key trading partners, which initially drove strong safe-haven demand for gold. The Gold Price Forecast XAUUSD has gained significant attention due to this backdrop.
However, the rally was short-lived. Gold dropped sharply before the weekend as traders booked profits and reacted to stronger-than-expected U.S. economic data. The combination of positive labor data and escalating geopolitical tensions is reshaping the XAUUSD forecast heading into next week.
NFP Report Surprises to the Upside
Friday’s Non-Farm Payrolls (NFP) data added unexpected pressure on gold prices:
- Jobs Added NFP: 228,000 (previous: 117,000)
- Unemployment Rate: Increased to 4.2% from 4.1%
- Average Hourly Earnings: Rose by 0.3% (prev. 0.2%)
The stronger labor report supports the U.S. dollar and weakens gold in the short term. Traders used the data release as an opportunity to take profits near the highs, leading to a steep selloff in XAUUSD by Friday.
China Imposes 34% Tariffs in Response
Adding to the volatility in the gold price forecast, China retaliated by announcing 34% reciprocal tariffs on U.S. imports. While this move reflects rising geopolitical risk, it was not enough to keep gold prices elevated ahead of the weekend.
With global markets already pricing in a high degree of uncertainty, many traders exited long gold positions, leading to a correction toward the $3,000 level.
Market analysts continue to emphasize the importance of the Gold Price Forecast XAUUSD as it reflects investor sentiment and economic indicators. Understanding these dynamics will be vital for forecasting future movements.
With ongoing geopolitical tensions, the Gold Price Forecast XAUUSD is becoming increasingly unpredictable. Traders are advised to monitor these developments closely.
Why Gold Dropped Despite Rising Risk
The current inflationary pressure is cost-push, not demand-pull. These tariffs increase the cost of goods without increasing demand, which could hurt the U.S. economy and complicate the Federal Reserve’s monetary policy outlook. Also the doubt rising how long US economy can hold these tariffs.
This dynamic is crucial for interpreting the gold price forecast for XAUUSD in the coming weeks. If inflation continues to rise without strong economic growth, the Fed may struggle to justify rate hikes—potentially bullish for gold in the medium term.
The implications of these trade policies on the Gold Price Forecast XAUUSD cannot be overstated, as traders assess the potential impacts on global economic stability.
As we analyze the Gold Price Forecast XAUUSD, it’s essential to consider the broader economic context, including inflation and interest rates.
XAUUSD Technical Outlook: Will Gold Fall to $2,850?
Unless there’s a new aggressive policy response from the U.S. or other G7 nations, gold may continue its pullback next week. Here are the key technical levels to watch:
- Support at $2,950: Minor support, short-term reaction zone
- Support at $2,850: Key consolidation zone from March
- Resistance at $3,167: All-time high, major breakout level
The next move in XAUUSD will likely depend on how traders interpret the ongoing trade war and whether the Fed adjusts its tone in upcoming statements.
Gold Price Forecast XAUUSD – Final Thoughts for Forex Traders
For forex traders in the USA, Europe, and Australia, gold remains a high-opportunity asset amid tariff tensions and uncertain inflation dynamics. The gold price forecast for XAUUSD remains volatile, and next week could see further downside unless new geopolitical headlines emerge.
Whether you’re trading gold CFDs or XAUUSD in the spot market, staying ahead of news like U.S.-China trade developments and labor market data will be key to managing risk and capturing opportunity.
The ongoing Gold Price Forecast XAUUSD reflects the volatility of the market, and traders should remain vigilant for sudden shifts based on new data releases.
Ultimately, the Gold Price Forecast XAUUSD will be shaped by how effectively traders navigate the complexities of the current economic landscape.