Gold market heats up as traders ramp up TACO-based purchases

According to FXEmpire.com, the US economy is experiencing a period of growth. For this reason, Wall Street investors have developed a new gold-trading strategy called TACO (Trump Always Chickens Out). As noted by GSC Head of Trading Phil Carr, this tactic is built around a predictable economic model that occurs when the US President introduces new trade tariffs.

On Monday, gold prices soared to $3,400 per ounce after Donald Trump announced he was doubling trade duties on steel and aluminum imports from 25% to 50%. These tariffs have become one of the US administration’s tools for exerting pressure on the market.

Moreover, recent statements by JPMorgan CEO Jamie Dimon have strengthened the current gold rally. Earlier, he warned the public about the possibility of a worsening situation in the bond market due to the country's growing national debt.

According to GSC Commodity Intelligence analysts, if gold repeats the dynamics of the last two years, its value could reach $7,000 per ounce. This forecast is close to JPMorgan's target of $6,000 by the end of Trump's second presidential term.