Gold surges past $2,900 amid tariff uncertainty
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Gold rally gains momentum
XAU/USD climbed above $2,900 per ounce on tuesday as traders continued to pile into the safe-haven asset. Earlier today, gold reached $2,915, marking its second consecutive day of gains. Fears surrounding Donald Trump’s potential tariff policies are keeping demand high, with investors hedging against policy risks.
Tariff uncertainty fuels demand
Historically, gold has been exempt from tariffs, but the current administration’s unpredictable stance on trade has left markets on edge. Speculation that gold could face import tariffs has triggered a surge in buying interest, as traders position ahead of any potential policy shifts.
US dollar weakness and China tensions
The US dollar index has been slipping, reaching a two-month low earlier this week. The weaker greenback typically supports gold prices by making it more attractive to international buyers. Additionally, growing trade tensions between China and the US are fueling safe-haven demand, with concerns that trade disputes could expand to major partners like Europe and Canada.
Trading outlook
With gold approaching its all-time high of $2,940, analysts are eyeing a potential breakout above $3,000 per ounce. As tariff concerns and geopolitical risks remain high, bullish momentum in gold could persist. Key support levels to watch sit around $2,850-$2,870, while a clean break above $2,940 could open the door for new record highs.
XAU/USD climbed above $2,900 per ounce on tuesday as traders continued to pile into the safe-haven asset. Earlier today, gold reached $2,915, marking its second consecutive day of gains. Fears surrounding Donald Trump’s potential tariff policies are keeping demand high, with investors hedging against policy risks.
Tariff uncertainty fuels demand
Historically, gold has been exempt from tariffs, but the current administration’s unpredictable stance on trade has left markets on edge. Speculation that gold could face import tariffs has triggered a surge in buying interest, as traders position ahead of any potential policy shifts.
US dollar weakness and China tensions
The US dollar index has been slipping, reaching a two-month low earlier this week. The weaker greenback typically supports gold prices by making it more attractive to international buyers. Additionally, growing trade tensions between China and the US are fueling safe-haven demand, with concerns that trade disputes could expand to major partners like Europe and Canada.
Trading outlook
With gold approaching its all-time high of $2,940, analysts are eyeing a potential breakout above $3,000 per ounce. As tariff concerns and geopolitical risks remain high, bullish momentum in gold could persist. Key support levels to watch sit around $2,850-$2,870, while a clean break above $2,940 could open the door for new record highs.