Gold hits record $2,862 as trade war fears drive safe-haven demand
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Gold continues its meteoric rise, hitting an all-time high of $2,862 per ounce as investors pile into safe-haven assets amid US-China trade war tensions and expectations of further Federal Reserve rate cuts.
Trade War Concerns Fuel Gold's Safe-Haven Rally
US-China trade tensions escalated after China retaliated against Trump's new tariffs with targeted levies on key US imports, reigniting fears of economic fallout. This has driven a flight to safety, with investors seeking protection in gold as global trade uncertainty looms. Adding to gold’s momentum, Trump's decision to delay tariffs on Canada and Mexico has kept market sentiment mixed, allowing for some risk-on positioning while still supporting safe-haven demand.
Weak US Labor Market Bolsters Fed Rate Cut Bets
Recent US economic data has signaled a slowing labor market, increasing bets that the Federal Reserve will continue its rate-cut cycle. JOLTS job openings dropped to 7.6 million in December, down from 8.09 million in the previous month, reinforcing concerns over cooling employment demand. US ADP employment report and ISM Services PMI are set to provide further clues on the labor market’s strength and USD direction ahead of Friday’s crucial Nonfarm Payrolls (NFP) data. A weaker USD has further supported gold, as the US Dollar Index (DXY) hovers near a one-week low, making gold cheaper for foreign investors and sustaining its bullish trend.
Gold’s Technical Setup: Overbought but Uptrend Intact
Gold’s breakout beyond the $2,800 level has confirmed strong bullish momentum, despite slightly overbought RSI readings on both hourly and daily charts. Key levels to watch: Immediate support sits near $2,830, with stronger support at $2,800. Major resistance remains untested above $2,862, with a potential upside target at $2,880-$2,900. A break below $2,772 could trigger technical selling and expose gold to deeper pullbacks.
Market Outlook: Can Gold Push Beyond $2,900?
With tariff headlines, US employment data, and Fed rate expectations in focus, gold’s bullish trend remains intact. Traders will closely watch the NFP report on Friday, which could fuel further upside or trigger profit-taking. For now, the path of least resistance remains to the upside, with gold bulls eyeing $2,900+ in the near term.
Trade War Concerns Fuel Gold's Safe-Haven Rally
US-China trade tensions escalated after China retaliated against Trump's new tariffs with targeted levies on key US imports, reigniting fears of economic fallout. This has driven a flight to safety, with investors seeking protection in gold as global trade uncertainty looms. Adding to gold’s momentum, Trump's decision to delay tariffs on Canada and Mexico has kept market sentiment mixed, allowing for some risk-on positioning while still supporting safe-haven demand.
Weak US Labor Market Bolsters Fed Rate Cut Bets
Recent US economic data has signaled a slowing labor market, increasing bets that the Federal Reserve will continue its rate-cut cycle. JOLTS job openings dropped to 7.6 million in December, down from 8.09 million in the previous month, reinforcing concerns over cooling employment demand. US ADP employment report and ISM Services PMI are set to provide further clues on the labor market’s strength and USD direction ahead of Friday’s crucial Nonfarm Payrolls (NFP) data. A weaker USD has further supported gold, as the US Dollar Index (DXY) hovers near a one-week low, making gold cheaper for foreign investors and sustaining its bullish trend.
Gold’s Technical Setup: Overbought but Uptrend Intact
Gold’s breakout beyond the $2,800 level has confirmed strong bullish momentum, despite slightly overbought RSI readings on both hourly and daily charts. Key levels to watch: Immediate support sits near $2,830, with stronger support at $2,800. Major resistance remains untested above $2,862, with a potential upside target at $2,880-$2,900. A break below $2,772 could trigger technical selling and expose gold to deeper pullbacks.
Market Outlook: Can Gold Push Beyond $2,900?
With tariff headlines, US employment data, and Fed rate expectations in focus, gold’s bullish trend remains intact. Traders will closely watch the NFP report on Friday, which could fuel further upside or trigger profit-taking. For now, the path of least resistance remains to the upside, with gold bulls eyeing $2,900+ in the near term.