Key Points:
- XAUUSD surges to $3,070 per ounce.
- Strong demand driven by safe-haven appeal amid US trade tariffs, with strong central bank inflows and rising ETF demand boost gold.
- Market awaiting US PCE data for further Fed policy guidance.
Gold Soars to Record Highs
Gold prices surged to a new all-time high on Friday, approaching $3,070 per ounce, driven by heightened concerns over trade tensions. This spike came ahead of the anticipated US tariffs, with President Trump reaffirming his 25% tariffs on foreign-made cars and auto parts, a move that could escalate into a broader trade dispute.
As a result, traders flocked to gold as a safe-haven asset. XAUUSD reached a high of $3,077.57 during the session, with the closing price recorded at $3,070.32, reflecting a significant upward movement.
Central Bank Demand, ETF Inflows and Monetary Policy in Focus
The surge in gold’s price was also supported by strong central bank inflows and increasing demand for gold ETFs. These movements indicate robust trader confidence in the precious metal, likely anticipating more economic uncertainty as the trade dispute evolves.
Markets are now looking ahead to the US PCE (Personal Consumption Expenditures) report for further clues on the Federal Reserve’s future monetary policy. After holding rates steady in the latest Federal Reserve meeting, the central bank’s commitment to two rate cuts by year-end remains a key factor for traders. This dovish stance, combined with escalating geopolitical risks, keeps gold on a bullish path.
Technical Outlook
Picture: XAUUSD tests resistance at $3,070.49 after a strong rally from $3,012.35, as seen on the VT Markets app.
The precious metal saw gains of 0.45%, closing at $3,070.32 after opening at $3,056.58. The session saw a strong rise, reaching a high of $3,077.57 before pulling back slightly to close just below the key resistance level.
The moving averages (MA 5,10,30) show strong bullish momentum, with short-term MAs consistently above the longer-term averages, suggesting a continuation of the upward price movement. The MACD (12,26,9) also supports this bullish view, with the histogram expanding and the MACD line (blue) well above the signal line (yellow).
Key levels to monitor include $3,070.49 as immediate resistance and $3,056.58 as key support. A break above resistance could signal further upside potential, while a drop below support may indicate a possible reversal or consolidation.
With gold breaking new records, continued geopolitical risks and the looming trade tariffs could sustain upward momentum. However, traders will be closely monitoring the PCE data and any updates on Federal Reserve actions that could influence gold’s safe-haven appeal.
