Then comes the twist: Trump reverses course days later. Tariffs are delayed, watered down or scrapped altogether under the guise of “negotiation.” The market breathes a sigh of relief and smart traders take profits.
As GSC’s Head of Trading, Phil Carr, notes: “For Gold traders, it’s a familiar pattern – buy the tariff panic, ride the rally, sell into the reversal, and reload for the next Trump tweetstorm.”
It’s volatility on demand and Gold thrives on it!
Real Example, Real Profits
The latest example unfolded just this week. Last Friday, Gold surged past $3,363 an ounce – its highest level since early April – following Trump’s shock announcement of steeping EU tariffs. By Sunday night however, Trump had already backtracked, postponing the move until July 9, claiming it was done “at the request of EU President Ursula von der Leyen.”
The result? Markets opened on Monday with Gold pulling back on profit-taking as savvy traders unwound safe-haven positions – exactly as the TACO playbook predicted.
According to GSC Commodity Intelligence, this “Threat–Panic–Retreat” loop is no longer an anomaly – it’s become a recurring feature of today’s market structure. And the TACO trade is the clearest, most profitable expression of that cycle.
