During the Asian trading session this Tuesday, the gold price (XAU/USD) maintained positive momentum and stabilized above $3200, approaching the historical high of $3246 set on Monday.

Affected by multiple factors such as the expectation of a significant interest rate cut by the Federal Reserve this year, repeated tariff policies between the United States and China, and the continued weakening of the US dollar, gold continues to perform strongly, demonstrating its strong safe haven nature in the current market environment.

If the Federal Reserve is caught in a dilemma between economic downturn and inflationary pressures, it will be more inclined to initiate a new round of easing policies, which is extremely beneficial for gold. "- Market research shows

Federal Reserve officials release dovish stance, as pressure on the US dollar drives up gold prices

The market currently expects the Federal Reserve to cut interest rates at least three times by 2025, with a total reduction of 75 to 100 basis points. Federal Reserve Director Christopher Waller pointed out that the current US tariff policy poses a significant impact on the economy and may force the Fed to initiate interest rate cuts to prevent the economy from falling into recession.

The inflation path is still unclear, and tariffs will exert additional upward pressure on prices. "- Raphael Bostic, Atlanta Fed President

At the same time, the US dollar index remains weak, with a cumulative decline of over 4% this month, making gold more attractive as funds continue to flow towards interest free precious metals.

Trump's temporary tariff exemption eases market sentiment, but gold bulls still dominate trend

Although US President Trump announced last week that he would temporarily exempt tariffs on electronic products such as smartphones and computers, and consider implementing similar measures on the automotive industry, market risk sentiment briefly rebounded, but this did not reverse the upward trend of gold.

Trump subsequently stated that these tariff exemptions were "temporary measures" and stated that a new round of tariffs would be imposed on imported semiconductors and pharmaceuticals in the coming weeks, further exacerbating trade concerns and providing support for gold prices.

Investors are digesting chaotic policy signals, and the position of gold as a safe haven asset is being further strengthened. "- Market research shows

From a technical perspective, the stabilization of gold prices around $3200 indicates that buying remains strong and is still on an upward trend in the short term. The daily RSI indicator is close to the overbought zone, indicating that there may be short-term fluctuations or slight adjustments, but the downside space is limited.

The short-term key support level is in the range of 3167-3168 US dollars. If it remains stable, this area can be seen as a buying opportunity. If this position is lost, the next support level looks towards $3136, and below it is the psychological support level of $3100.

On the contrary, the resistance zone above is located between 3245-3246 US dollars. Once it effectively breaks through, gold may start a new round of accelerated upward trend.

Editor's viewpoint:

The current rise in gold prices not only reflects the concentrated inflow of safe haven funds, but also reflects investors' high sensitivity to the Federal Reserve's policy path. Against the backdrop of structural pressure on the global economy, resurfacing tariff frictions, and the possibility of the Federal Reserve launching a new round of easing cycles, the medium - to long-term upward logic of gold remains stable.

Although emotions have temporarily stabilized in the short term due to the impact of Trump's exemption measures, with the successive introduction of new tariff policies, market volatility will further increase, and gold still has strong support. Continue to follow this week's speech by Federal Reserve Chairman Powell.