Gold Prices in the Spotlight Again: Decoding the Impact of Trump Tariffs and Future Market Trends

Gold Daily Chart

On February 3, 2025, gold prices experienced a temporary dip, with spot prices falling to $2,780.56 per ounce. This decline was driven by the sharp appreciation of the U.S. dollar following President Trump’s tariffs on China, Canada, and Mexico. However, with gold reaching an all-time high just a week ago, analysts expect the current dip to be short-lived. JPMorgan maintains a bullish outlook, predicting gold prices to reach $3,000 per ounce by late 2025, supported by strong demand as a safe-haven asset.

Future Outlook and Predictions

1. Technical Analysis of Gold Prices
   The attached daily chart shows that gold remains in an upward trend, with its moving average indicating a bullish momentum. While prices dipped below the psychological resistance level of $2,800, historical patterns suggest a potential rebound from current levels.
2. Impact of Tariffs and Dollar Strength
   The implementation of Trump’s tariffs has strengthened the U.S. dollar, putting short-term pressure on gold prices. However, rising inflation concerns and geopolitical risks are expected to boost demand for gold as a safe-haven asset in the near future.
3. Mid-to-Long-Term Outlook
   As JPMorgan forecasts, declining U.S. interest rates and stable economic conditions will likely support gold prices in the medium to long term. The potential for gold to reach $3,000 per ounce by late 2025 aligns with these trends.
4. Risk Aversion Across Markets
   The volatility in equity markets and tariff-driven uncertainty are expected to drive investors toward gold. While short-term fluctuations may occur, gold is positioned to maintain its upward trajectory in the longer term.

Explanation for Beginners

The current volatility in gold prices presents a great opportunity for beginners to start trading and learn about the market. Using CFDs (Contracts for Difference) is a flexible way to trade gold without owning the physical asset. CFDs allow you to start small, take advantage of both rising and falling prices, and trade efficiently. Here’s a step-by-step guide for beginners to start confidently.

✅ What should you do?

1. Start Small and Familiarize Yourself with the Market
   Gold CFDs allow you to trade with a small initial investment since you don’t need to purchase the physical asset. Begin with a modest position, such as $100, to understand the market dynamics and trading mechanics without risking too much.
2. Take Advantage of Price Movements
   CFDs enable you to profit from both rising and falling prices. For example, when the dollar strengthens due to tariff policies, gold prices may decline. In such scenarios, you can open a “sell” position to take advantage of the downward movement. Similarly, during upward trends, you can “buy” and benefit from price increases.
3. Practice Risk Management with Stop Losses
   Always set a stop-loss level to minimize potential losses. For instance, you can set it at 2% below your purchase price to automatically exit a trade if the market moves against you. This ensures that your losses remain manageable while allowing you to stay in the game.
4. Use News and Charts to Guide Your Trades
   Gold prices are influenced by economic news, such as changes in U.S. tariffs or interest rates. Regularly check the news and use tools like moving averages or support and resistance levels on the chart to identify trading opportunities. For example, if the price approaches $2,800, monitor whether it rebounds or breaks through this key level.
5. Combine Short-Term and Long-Term Strategies
   In the short term, you can capitalize on price fluctuations to make quick gains. At the same time, consider holding a long-term position, as analysts predict gold prices may reach $3,000 per ounce by the end of 2025. Balancing these strategies can help you build a more stable portfolio.
6. Leverage the Benefits of CFDs
   CFDs provide several advantages for beginners:
   • Flexibility: Trade both rising and falling markets, creating opportunities in any market condition.
   • Low Initial Investment: Start with smaller amounts while learning the basics of trading.
   • No Physical Ownership: You can trade online without dealing with the storage or logistics of physical gold.
   • Leverage: Amplify your exposure to the market with a smaller upfront investment.

Why CFDs Are Ideal for Beginners

• Profit in Any Market Condition: Whether gold prices rise or fall, CFDs allow you to adapt and find opportunities.
• Learn with Low Risk: Small initial investments make it easier to learn without significant financial risk.
• Convenient and Accessible: With CFDs, you can trade gold online anytime, anywhere, without worrying about physical ownership.

CFDs offer an excellent starting point for beginners looking to trade gold. They are flexible, accessible, and provide a cost-effective way to gain exposure to the gold market. Start with a small amount, focus on risk management, and gradually build your trading skills. With patience and practice, you’ll be able to take full advantage of the opportunities in the gold market. Take your first step today!