The first three days of this week have sparked anxiety among investors in US financial instruments.
The Trump administration is seeking a tool to influence twelve regional branches of the Federal Reserve (Fed), threatening the central bank’s autonomy, which was previously unquestioned. If the court approves Donald Trump’s decision to dismiss Fed member Lisa Cook, he could secure a majority on the Board of Governors. So, the administration's control over the selection and reappointment process for regional banks—a responsibility shared by private-sector boards of directors and the Board of Governors—would represent another extraordinary step in Trump's ongoing campaign to bend monetary policy to his will.
Market risks have also soared due to the implementation of 50% tariffs on Indian goods. This move undermines Washington’s long-standing efforts to establish a strong relationship with New Delhi. Another package of import duties against the Asian country—the highest in the region—came into effect Wednesday at 00:01 am Washington time, doubling the existing 25% tariffs. These restrictions apply to more than 55% of goods shipped to the United States—India's largest export market.
Under these circumstances, safe-haven assets typically gain momentum, as the US dollar weakens.
From a technical perspective, a surge in gold would be confirmed upon a breakout above the current resistance zone, defined by both a descending trendline and a key horizontal level. If quotes exceed $3,445, the precious metal could update its historical high.
The overall recommendation is to buy gold if the price hits $3,445. Profits should be taken at $3,550. Stop Loss could be set at $3,300.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
