Gold to Hit $2,950? Tariff Uncertainty Fuels Safe-Haven Demand
Gold prices continued their upward trajectory on Tuesday, buoyed by market uncertainty surrounding U.S. President Donald Trump’s tariff policies.
The metal is trading at $2,911, marking a 0.08% increase, as traders seek refuge from potential trade disruptions. Analysts highlight that strong central bank buying and fears of economic instability have further fueled demand for the safe-haven asset.
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Kyle Rodda, a financial market analyst at capital.com , noted, “We’re seeing strong central bank demand, and with potential shortages in Europe, there’s a rush to secure gold in the U.S. ahead of possible tariffs.”
The U.S.-China trade war, compounded by pending tariffs on Mexico, Canada, and European imports, has left markets in flux. Despite inflation cooling, Federal Reserve Governor Michelle Bowman signaled that rate cuts will remain on hold until greater clarity on inflation and trade risks emerges.
Goldman Sachs Raises Gold Price Forecast to $3,100
Gold’s bullish outlook received further support from Goldman Sachs, which revised its year-end 2025 gold price target to $3,100 per ounce, up from its previous forecast of $2,890. The bank cites structurally higher demand from central banks, as they continue accumulating gold reserves to hedge against monetary risks and inflation.
Meanwhile, European leaders convened in Paris to discuss increasing defense spending, underscoring growing geopolitical uncertainties. However, discussions about deploying peacekeepers to Ukraine remain unresolved, contributing to lingering investor caution.
Gold’s status as a traditional inflation hedge has strengthened as global economic concerns mount. With the Federal Reserve maintaining a cautious stance on interest rate cuts, investors are increasingly shifting to non-yielding assets like gold to preserve value.
Gold (XAU/USD) Technical Outlook – February 18, 2025
Gold is trading at $2,911, with strong support near $2,895, aligning with the 50-day EMA at $2,902. Buyers have defended this zone successfully, signaling resilience amid market volatility.
Immediate resistance stands at $2,917, with a breakout paving the way for a move toward $2,940 and $2,961.
Failure to break above resistance may lead to price consolidation.
A drop below $2,895 could trigger declines to $2,878, $2,865, and $2,848.
From a technical perspective, the recent bounce off support suggests a continuation of the uptrend, but a decisive close above $2,917 is required for confirmation. The 50-day EMA at $2,902 acts as dynamic support, while the ascending trendline reinforces the bullish outlook.
Gold remains at a critical juncture, with traders closely watching upcoming macroeconomic events and Federal Reserve commentary. Any clarity on tariff policies or shifts in monetary policy expectations could trigger sharp price movements.
Key Takeaways:
Gold finds strong support at $2,895, backed by the 50-day EMA at $2,902.
Immediate resistance stands at $2,917, with upside targets at $2,940 and $2,961.
A break below $2,895 could lead to further downside toward $2,878 and $2,865.
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