Gold prices (XAU/USD) continue to rise in the European session on Thursday, staying close to the record high reached on February 24. Investors are buying gold as a safe-haven asset due to concerns over US President Donald Trump’s trade policies. Expectations that the Federal Reserve (Fed) will cut interest rates this year due to a slowing economy also support gold prices.
Key Factors Affecting Gold Prices
- The US has imposed a 25% tariff on steel and aluminum imports, increasing trade tensions.
- Trump has warned of further actions if the European Union and Canada retaliate.
- The European Commission plans to impose tariffs on $28 billion worth of US goods next month, while Canada has announced 25% tariffs on over $20 billion worth of US products.
- US inflation data came in lower than expected, increasing market expectations for three Fed rate cuts in June, July, and October.
- The US Consumer Price Index (CPI) fell to 2.8% in February from 3% in January, while core inflation dropped to 3.1% from 3.3%.
- The US Dollar Index recovered from its lowest level since October 16 but did not impact gold’s three-day uptrend.
- Investors are now waiting for the US Producer Price Index (PPI) report for more trading opportunities.
Gold Price Outlook: Bulls Aim for Record Highs
Gold prices remain strong above the $2,928–$2,930 resistance zone, increasing the chances of reaching the all-time high of $2,956. Since key technical indicators remain positive and are not yet overbought, further buying could push gold even higher.
Support and Resistance Levels:
- Support Levels: $2,930–$2,928 | $2,912–$2,910 | $2,900 | $2,860 | $2,832–$2,833
- Resistance Level: $2,956 (record high)
If gold falls below $2,928, it could drop further to $2,900, with deeper declines possible toward $2,860 and $2,832.
US Dollar Performance
The table below shows the percentage change of the US Dollar (USD) against major currencies today. The USD has performed best against the Australian Dollar.
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