US Dollar Holds Steady as Gold Climbs Amid Fresh Trump Tariff Tensions

crypthub

about 4 hours ago

Dollar Stability

The US Dollar Index held between 104.20‑104.65 on March 18, 2025, showing little reaction to renewed Trump tariff proposals. Resilience stemmed from the Fed’s data‑dependent stance, steady Treasury yields and the dollar’s safe‑haven appeal. EUR/USD hovered around 1.084‑1.086, USD/JPY near 151.8 and the pound modestly firm at 1.2650.

Gold Surge

Gold jumped from $2,150 to $2,215 per ounce, a 3 % rise and the strongest single‑day gain in three weeks. The rally was driven by heightened geopolitical risk, reported central‑bank buying and algorithmic breaks above key resistance. Real‑yield dynamics weakened as TIPS yields rose yet gold kept climbing.

Tariff Context & Market Implications

Trump’s plan proposes a 25 % levy on EU autos and a 30 % duty on selected Chinese tech, echoing 2018‑19 disputes. Historically, such moves sparked a 5 % dollar surge and an 18 % gold gain, but markets now price reactions more modestly. Analysts warn prolonged tensions could boost emerging‑market volatility and shift reserves toward non‑correlated assets like gold.

Technical Outlook

The Dollar Index finds support at 104.00 and faces resistance near 104.80; a break above could revive strength. Gold’s next resistance lies at $2,230 with support around $2,180. EUR/USD and USD/JPY watch 200‑day averages at 1.0880 and the 152.00 yen level for possible breakout or central‑bank intervention.