The gold market found itself on the back foot after former US President Donald Trump ruled out tariffs on imported gold bars, a move that relieved traders and prompted a subtle yet notable shift in recent gold trading dynamics. With the gold price at $3346.74 (as of 2025-10-17 21:00 SGT), the response in XAUUSD highlights just how sensitive precious metal markets are to global trade headlines. For gold traders, this news not only changes the immediate backdrop but also raises new questions about direction and opportunity.

Tariff Relief and Market Sentiment

Trump’s decision to rule out new tariffs on imported gold bars instantly eased market nerves. For several weeks, speculation over potential trade barriers had contributed to risk-off flows, with investors turning toward gold as a perceived safe haven. Now, the gold price’s retreat from recent highs reflects a partial unwind of those defensive positions.

Alongside the price move, recent ETF flows show net outflows from major gold-backed funds—around 6 tonnes in the past week, suggesting some traders are rotating capital back into riskier assets. Spot traders watched the reaction with keen interest, knowing how quickly gold sentiment can shift on policy headlines.

For traders: Relief from tariff threats may cap near-term upside in XAUUSD, so monitoring ETF flows and sentiment shifts becomes critical for short-term positioning.

Technical Levels and Intraday Drivers

As gold hovers at $3346.74, the XAUUSD price action has entered a consolidative phase. Support is holding near $3340, while resistance emerges at the $3355 level—a tight range that reflects this news-driven consolidation. Technical indicators, like RSI hovering around the midline, support the view that the market is now waiting for the next catalyst.

Traders with short timeframes should note that US Treasury yields have ticked up slightly, hovering in the 4.5%–4.7% zone for the 10-year note. Rising yields tend to weigh on gold, but with the greenback steady, the gold price may stay rangebound until either a macro shock or a break above $3355 stirs momentum.

For traders: Watch for a technical breakout above $3355 or a dip below $3340 for signs of renewed gold trading direction in XAUUSD.

Outlook and Positioning Strategies

The gold market will now look for its next trading cues from economic data and global risk sentiment. Without tariff uncertainty, traders may focus more on inflation readings and central bank policy chatter, with the gold price at $3346.74 serving as a key reference.

Latest CFTC positioning suggests that speculative long exposure remains elevated but is no longer building, indicating a pause in bullish conviction among major funds. Volatility could pick up around upcoming macro events or any surprise headlines from major economies, especially around US jobs or inflation reports.

For traders: Consider trimming positions or tightening stops in XAUUSD as market indecision persists and macro event risk looms.

In summary, the easing of tariff anxieties has given gold traders a clear, near-term framework. Above $3355, expect momentum buyers to pile in; below $3340, watch for a deeper retracement as the gold market resets direction.