Gold price is blazing through the markets with unstoppable momentum, eyeing a potential new all-time high.
At the time of writing, Gold (XAU/USD) is trading around $3,107, having surged nearly 5% since Tuesday. This explosive rally stems from fresh geopolitical tensions and aggressive trade decisions from the United States and China. Investors are flocking to the safe-haven metal amid economic instability and mounting uncertainty.
Key Takeaways for Gold Price
- Gold price surged to $3,107 as US-China trade tensions intensified and tariff policies rapidly shifted.
- President Trump declared a 90-day suspension on planned tariff hikes for 56 countries and the European Union.
- China hit back with an 84% tariff on all US imports, leading the US to impose a 125% tariff on Chinese products.
- A weakened Chinese Yuan and talk of economic stimulus add to Gold’s bullish outlook.
- Technical resistance looms near $3,167 and $3,180, while strong support rests near $3,000.
Market Context: Trade Tensions Push Gold Price Higher
This week’s trade decisions from the White House created ripples across global markets. President Donald Trump initiated a steep 125% tariff on Chinese imports while easing the blow for 56 countries and the European Union with a 90-day delay on increased tariffs.
In retaliation, China announced plans for an 84% tariff on all US goods—effective Thursday. The tit-for-tat measures are stoking fears of a prolonged US-China trade war, with no resolution in sight.
Meanwhile, China’s central bank—the People’s Bank of China (PBOC)—continued its strategy of weakening the Yuan for a sixth consecutive session, likely to gain leverage in negotiations. In spite of warnings from US Treasury Secretary Scott Bessent, China seems to be leveraging its currency as a strategic geopolitical tool.
Technical Analysis: Price Eyes $3,167 Record Level
Gold price action reversed recent losses thanks to renewed demand for safe-haven assets and Trump’s tariff delay.
Gold is currently challenging the R1 resistance level at $3,131. If momentum holds, a break above the all-time high of $3,167 could pave the way to the next ceiling at $3,180 (R2 resistance).
On the downside, support is forming at $3,050, aligned with the daily Pivot Point. Further cushioning is seen near the March 10 high ($3,057) and the psychological $3,000 mark. Below that, the S1 support at $3,002 provides an additional buffer.
Expert Insight: Gold’s Role as a Core Safe-Haven Asset
According to Reuters, central banks and long-term investors are increasingly making Bullion a core holding. They’re betting on Gold’s resilience amid inflation, interest rate shifts, and macroeconomic instability.
While the CME FedWatch tool indicates just a 19.5% chance of a May rate cut, the overall outlook still suggests a trend toward lower borrowing costs. June’s probability for a rate cut sits at 75.3%, keeping the bullish Gold narrative intact.
Even if short-term policy changes cause fluctuations, history shows Gold thrives during prolonged uncertainty. Following the 2008 Global Financial Crisis, Gold embarked on a multi-year rally—one that many believe is repeating today.
Conclusion: Gold’s Trajectory Remains Bullish
As tariffs escalate, currencies fluctuate, and uncertainty grows, Gold remains a magnet for safe-haven demand. While today’s rally follows Trump’s tariff pause, broader economic conditions suggest this momentum could extend further. A breakout above $3,167 might mark a new chapter in Gold’s long-term bullish run.
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