Trump Threatens New Tariffs on Russia – XAUUSD’s Renewed Appeal

U.S. President Donald Trump has escalated pressure on Russia by announcing potential new tariffs, taxes, and sanctions if Moscow does not agree to negotiate an end to the war in Ukraine. In a post on Truth Social, Trump stated that these measures could extend to “other participating countries,” though he did not specify which nations he considers involved in the conflict.

In any case, the economic impact of further sanctions could be limited by the fact that U.S. imports from Russia have plummeted from $29.6 billion in 2021 to just $2.9 billion in 2024 due to existing restrictions. Key imports such as Russian petroleum, semi-finished steel, and pig iron have already dropped to zero. However, the U.S. continues to rely on Russia for fertilizers ($1.4 billion), uranium, palladium, and rhodium, which are essential for agriculture and automotive industries.

Russia’s deputy U.N. Ambassador Dmitry Polyanskiy responded cautiously, noting that the definition of a “deal” would depend on addressing the “root causes” of the Ukrainian crisis. With Trump previously claiming he could secure a deal “on day one” of his presidency, his aides now acknowledge that negotiations may take months or longer to materialize.

This tougher stance adds uncertainty to the markets, and markets hate uncertainty. As a result, gold is now eyeing its ATH again. Following our bullish scenario, #XAUUSD consolidated above $2726/oz, hinting at further continuation. The precious metal is now trading at $2753/oz, having all chances of reaching the second target at $2800/oz.

If neither party is going to ease its approach and help move on the stalled peace talks soon, nothing will stand in gold’s way.

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