Earlier today, the yellow metal gold prices soared after U.S. President Donald Trump warned to boost tariffs on Chinese goods, intensifying Sino-U.S. trade tensions, which urged traders to sell riskier assets and support safe-haven bullion. Safe haven asset gold was up 0.2% at $1,281.63.
The bullish trend was triggered after the U.S. President Donald Trump on Sunday announced he would hike tariffs on $200 billion worth of Chinese goods this week. He also announced he would target an additional $325 billion of Chinese assets with 25% tariffs.
Anyways, the news has already priced in, and gold has started showing the correction. Gold prices are falling down from 1,283 to 1,277. While the immediate support prevails around 1,276. A bearish breakout of 1,275 can extend bearish rally towards 1,271.
Key Trading Level: 1276.69
Let’s keep an eye on 1,275 as gold can reverse above this level to target 1,281. While selling positions can be taken below 1,275 to target 1,271/1,269. All the best!