Gold is rallying as trade tensions and economic risks push investors toward safe havens. With central bank policies in focus and markets bracing for potential rate cuts, gold’s momentum remains strong. Here’s what’s driving the surge.
Gold prices soared to unprecedented levels on Friday, nearing USD 3,070 per ounce as rising concerns over trade tensions drove investors towards this safe-haven asset.
The surge came just ahead of the expected US tariffs, with President Trump reiterating his plan to impose a 25% tariff on foreign-made cars and auto parts – a move that risks escalating trade conflicts.
This uncertainty saw traders pivot towards gold, pushing XAUUSD to peak at USD 3,077.57 during the trading session before closing at USD 3,070.32, reflecting a notable upswing.
In addition to trade-related fears, gold’s upward momentum was fuelled by strong inflows from central banks and increased interest in gold-backed exchange-traded funds (ETFs).
This trend signals growing confidence in gold’s value as economic uncertainty lingers amid trade tensions.
Market participants are now eagerly awaiting the US Personal Consumption Expenditures (PCE) report for further insights into the Federal Reserve’s policy direction.
Although the Fed left interest rates unchanged in its recent meeting, it maintains a dovish outlook, with two potential rate cuts expected by the end of the year.
This softer monetary stance, combined with ongoing geopolitical risks, continues to bolster gold’s bullish outlook.
Gold gained 0.45% on the day, closing at USD 3,070.32 after opening at USD 3,056.58.
During the session, the price climbed to a high of USD 3,077.57 before retreating slightly, ending just below a key resistance level.
Technical indicators confirm the bullish momentum. The short-term moving averages (MAs 5, 10, 30) remain firmly above the longer-term averages, suggesting sustained upward pressure.
Meanwhile, the MACD (12, 26, 9) is expanding, with the MACD line (blue) positioned well above the signal line (yellow), further supporting the positive outlook.
Key price levels to watch include immediate resistance at USD 3,070.49 and support at USD 3,056.58.
Breaking above the resistance could pave the way for further gains, while a drop below the support level may signal a potential pullback or consolidation phase.
As gold continues to break records, the combination of trade-related concerns, geopolitical instability, and a dovish Fed stance is likely to keep upward momentum intact.
However, traders should stay alert for upcoming PCE data and any shifts in Federal Reserve policy, as these factors could impact gold’s safe-haven appeal in the near term.
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