Key Points:
- Gold (XAUUSD) surges to a new record of $3,219.60 per ounce.
- President Trump’s tariffs stoke fears of a global recession, pushing traders towards safe-haven assets.
- Gold gains 1.3%, surpassing previous highs.
- U.S. economic uncertainty, including potential rate cuts, fuels gold’s rally.
A New Record Above $3,200 for the Bullion Amid Escalating Trade Tensions
Gold prices surged on Friday, reaching a fresh record high of $3,219.60 per ounce as market participants sought safe-haven assets amidst escalating global trade tensions. The precious metal gained 1.3% in early Asian trading, pushing the price above $3,200 and continuing its rally that saw consecutive gains exceeding 3% in the last two days.
This surge in gold prices is being driven by concerns over the global economic outlook, particularly the ongoing U.S.-China trade war. Despite President Trump’s temporary tariff pause, his unpredictable tariff policies have continued to fuel market uncertainty, leading to a flight to safety by traders.
Gold’s Safe Haven Appeal in Times Economic Uncertainty
The trade war between the world’s two largest economies has triggered a frantic selloff in U.S. stocks, bonds, and the dollar, while pushing traders towards gold.
Gold’s rally has also been supported by a decline in U.S. inflation. Recent data showed that U.S. inflation has cooled in March, leading traders to price in expectations for three potential Federal Reserve interest rate cuts this year, with some even anticipating a fourth cut.
Lower interest rates typically benefit gold, as it does not pay interest, making it an attractive asset in a low-rate environment. The Federal Reserve’s actions, especially any interest rate cuts, would provide further support to the gold market.
Technical Outlook
Picture: XAUUSD hits a fresh high of 3219.60, maintaining strong bullish momentum, as seen on the VT Markets app.
XAUUSD (Gold) increased by 1.13%, closing at 3211.77 after opening at 3175.73. The pair saw steady upward movement, reaching a high of 3219.60 before closing near 3211.77.
The moving averages (MA 5,10,30) show a clear bullish trend, with the shorter-term moving averages crossing above the longer-term ones. This supports the upward momentum, indicating potential for further gains. The MACD (12,26,9) confirms the strength of this trend, with the positive histogram and the MACD line (blue) moving well above the signal line (yellow).
Key levels to watch include 3219.60 as resistance and 3035.99 as support. A break above the resistance could signal further upside potential, while a drop below support could suggest a potential pullback.
XAUUSD continues to show strong bullish momentum, with the price pushing higher above the 3211 resistance level. A sustained move above 3219.60 could indicate further gains, while a drop below 3035.99 might signal a correction. Keep an eye on broader market developments for further trend confirmation.
