Will We See $3,000 In the Gold Price Today-Tomorrow After US PCE?
The Gold price has been absolutely surging in 2025 and it has been approaching the $3,000 level pretty fast, which will be broken soon, as the global uncertainties remain high in all aspects of life.
Gold (XAU/USD) surged past its previous peak of $2,911.30, setting a new all-time high at $2,942.70 on Tuesday. The precious metal has been on an upward trajectory since October 2023, gaining nearly 70%. While Trump’s reelection in November 2024 briefly led to a pullback, growing trade tensions and economic uncertainty pushed gold higher, rising over 20% in 2025 from its $2,524 starting point.
Gold Chart Daily – The Last 2 Candlesticks Paint A Bullish Picture
This week, gold retreated slightly after hitting its record high as investors braced for further U.S. trade policy shifts. Meanwhile, Federal Reserve Chair Jerome Powell reaffirmed that the Fed has no plans to adjust its 2% inflation target or consider rate hikes for now. However, concerns over a potential global trade war have been fueling gold’s rally, particularly after the U.S. imposed a 25% tariff on steel and aluminum imports. Additional 10% tariffs on Chinese goods, along with potential 25% duties on electronics, vehicles, and pharmaceuticals, have heightened inflation fears and slowed economic growth.
Gold’s Path to $3,000
Given the rising uncertainty, gold appears poised to break the $3,000 barrier, possibly as soon as tomorrow following the release of the U.S. PCE inflation report. The higher tariffs are also expected to push gold prices even further. Additionally, U.S. producer prices saw strong gains in January, reinforcing market expectations that the Fed will delay rate cuts until late 2025, adding further inflationary pressure and supporting gold’s continued rise.
January PPI data from the Census Bureau
- US January PPI rose +3.5% y/y, exceeding the +3.2% forecast (prior: +3.3%).
- PPI m/m increased +0.4%, above the +0.3% estimate (prior: revised from +0.2% to +0.5%).
- Core PPI (ex food & energy) grew +3.6% y/y, surpassing the +3.3% forecast (prior: +3.5%).
- Core PPI m/m matched expectations at +0.3%, but the previous reading was revised from 0.0% to +0.4%.
- Ex food, energy, and trade PPI recorded +3.4% y/y, slightly above the previous +3.3%.
Gold Live Chart
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