Insights 
VT 
Key Points:
- Gold surges to above $3,390 per ounce, setting a new record high.
- Safe-haven demand boosted by ongoing trade tensions and a weaker U.S. dollar, as U.S. dollar hits a three-year low—enhancing gold’s appeal to international traders.
- ECB interest rate cuts and potential U.S. tariff hikes on critical mineral imports further support gold’s rally.
Gold Soars Above $3,390, Supported by Trade Tensions and U.S. Dollar Weakness
Gold prices surged more than 1% on Monday, rising to a new record high above $3,390 per ounce, driven by robust safe-haven demand amid escalating global trade tensions and the continued weakening of the U.S. dollar. The price of gold has now reached levels not seen before, offering an attractive refuge for traders seeking stability.
The rally in gold came as President Donald Trump ordered an investigation into the imposition of new tariffs on all U.S. critical mineral imports—a major escalation in the ongoing trade dispute, especially with China. The uncertainty surrounding these trade tensions is playing a significant role in driving the demand for safe assets like gold.
Weak U.S. Dollar Boosts Gold Appeal
Adding to gold’s appeal, the U.S. dollar fell to a three-year low, making gold more attractive to holders of other currencies. This decline in the U.S. dollar is amplifying gold’s position as a hedge against currency weakness.
ECB Cuts Rates, Further Elevating Gold’s Allure
In addition to geopolitical concerns, recent monetary policy actions have further supported the gold market. The European Central Bank’s decision to cut interest rates has helped enhance the precious metal’s attractiveness, as market participants seek higher returns in an environment where yields on other assets remain low.
Technical Outlook for Gold
Picture: XAUUSD surges past 3380 to test resistance at 3390.71, as seen on the VT Markets app.
XAUUSD increased by 1.74%, closing at 3389.75 after opening at 3331.94. The price saw a strong upward movement, reaching a high of 3390.71 before retracing slightly to close near 3389.75.
The moving averages (MA 5,10,30) show bullish momentum, with the shorter-term moving averages crossing above the longer-term ones, indicating continued potential for upward movement. The MACD (12,26,9) confirms the bullish trend, as the histogram is positive, and the MACD line (blue) is above the signal line (yellow).
As global trade uncertainties persist and the U.S. dollar remains under pressure, gold’s price may continue to see upward momentum. Traders will be watching for further developments in the U.S.-China trade dispute and potential policy actions from central banks that could impact the precious metal’s performance.
Immediate resistance for gold is at $3,390, with a break above this level potentially opening the way for further gains. Support levels are now being monitored near $3,320, with further downside risk if geopolitical tensions ease.
