Gold’s price reached a record high of $2,956 during North American trading, supported by a stable US Dollar and unchanged US yields. This uncertainty surrounding trade policies under President Trump has influenced bullion prices amid escalating tensions involving the US, Canada, and Mexico.
The yield on the US 10-year Treasury note decreased to 4.443%, boosting precious metal values. Real yields are steady at approximately 2.017%, and mixed business activity data from the US reflects rising inflation expectations and declining consumer sentiment.
XAU/USD maintains an uptrend, although potential buyers may be cautious, indicated by an overbought Relative Strength Index. If the price surpasses $2,956, the next resistance level may be $3,000, while a drop below $2,916 could see it test $2,900.
Gold serves as a safe haven and hedge against inflation during economic instability. Central banks added 1,136 tonnes of gold in 2022, the highest yearly purchase on record, with notable increases from emerging economies.
The price of gold reacts to various factors, such as geopolitical unrest and interest rate changes. It generally rises when the Dollar weakens, while a stronger Dollar typically suppresses gold prices.
These shifts in gold prices, supported by a steady Dollar and consistent yields, show that the metal remains highly sought after during political and economic uncertainty. Seeing bullion climb to a fresh high of $2,956 suggests that traders are continuing to lean towards gold as a hedge, particularly with tensions growing between North American nations.
With the US 10-year Treasury yield dipping to 4.443%, precious metals received a natural lift. This, coupled with real yields holding at 2.017%, signals steady demand. Business activity data in the US paints a mixed picture, with inflation expectations increasing while consumer sentiment is weakening. Such conditions tend to bolster gold’s appeal as a store of value, given that inflation pressures erode the purchasing power of cash holdings.
As things stand, gold remains in an upward trajectory, though buyers might be hesitant to commit fully due to the Relative Strength Index entering overbought territory. If gold pushes past $2,956, the next hurdle lies at $3,000—an obvious psychological level that could act as a magnet for price action. However, if momentum falters and it slips under $2,916, then $2,900 would likely come into focus as the next support.
Given that demand remains strong from governments—central banks accumulated 1,136 tonnes of gold in 2022, marking the highest annual acquisition ever recorded—this provides another supportive factor. Much of this buying came from emerging economies, which have been increasing their reserves to reduce reliance on foreign currencies.
Gold’s behaviour is shaped by multiple influences, from geopolitical stress to changes in interest rates. When the Dollar loses value, this generally lifts gold, and the reverse is true when the greenback strengthens. Traders should remain alert to external events that might shift expectations around monetary policy or global stability, as these tend to be the most immediate triggers for price action.
