These tariffs are likely to raise concerns about global economic growth and create uncertainty about how other countries might respond, which could keep supporting gold prices.
On the bright side, the announcement brought some relief to metal markets. It's now clear that steel, aluminum, gold, and copper imports won't be affected by these tariffs. For gold, this exemption might lead to a slowdown in gold imports into the US.
The week will end with the US Nonfarm Payrolls (NFP) report for March, coming out on Friday. This key jobs report will influence what the market expects from the Federal Reserve's future policies. Earlier this week, the ADP Employment Change report showed the private sector added 155,000 jobs in March, well above the forecast of 105,000 and February's 84,000.
Given all the narrative in play I still do expect bullish pressure to remain on Gold prices. The clarity needed for this to not be an issue is yet to arrive and thus I can see Gold prices rising to test recent highs in the days ahead.
Given the scenarios presented above, the week ahead looks to be a volatile one with a lot of whipsaw price action ahead.
Overall, recent developments mean that the bulls remain in charge. What we have seen of late is that when it comes to Gold, overall market sentiment seems to be the biggest driving force.
