Gold price (XAU/USD) has reached a fresh all-time high, surpassing the $2,990 mark as of Friday. This surge represents a weekly gain of over 2.5%, driven by heightened demand and increased investor inflows. The rally gained momentum after U.S. President Donald Trump retaliated against European counter-tariffs, announcing a 200% tariff on European wine and champagne.
This aggressive stance has unsettled market participants, reinforcing concerns that Trump will maintain his hardline tariff policies. Consequently, risk assets face uncertainty, while gold benefits from increased safe-haven demand. U.S. Treasury yields also hit a five-day high on Thursday before retreating.
Market Movers: Growing Concerns Amid Tariff War
- President Trump’s trade policies continue to fuel market uncertainty, boosting safe-haven demand for gold price.
- Chinese jeweler stocks have experienced substantial gains this week, with Zhejiang Ming Jewelry Co. reaching its 10% daily limit for the fourth consecutive day. Chow Tai Fook Jewellery Group has also risen in response to gold’s price rally.
- According to Macquarie Group’s Commodities Strategy team lead Marcus Garvey, gold holdings remain 20% below their 2020 peak, indicating further potential for inflows.
- The CME FedWatch Tool predicts a 97% probability of no rate change at the upcoming March 19 Fed meeting. The likelihood of a rate cut on May 7 stands at 30.3%.
Technical Analysis: $3,000 in Sight Before Market Close
Gold’s rapid ascent toward the psychological $3,000 mark follows BNP Paribas’ recent projection of a $3,200 target for Q2. With both European and U.S. trading sessions yet to conclude, a further surge is possible. However, traders should be cautious when entering positions above $3,000, as short-term profit-taking could lead to pullbacks.
Key Technical Levels:
- Resistance Levels:
- R1: $3,007
- R2: $3,026
- Support Levels:
- Pivot Point: $2,970
- S1: $2,951
- S2: $2,914
- Major Psychological Support: $2,900
Traders should closely monitor gold’s movement near $3,000, as breaching this level may lead to uncharted price territory. The daily resistance and pivot points will play a crucial role in determining short-term price action.
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