Gold Hits Record High—Can It Break $3,000 as Trade Tensions Rise?
Gold prices have climbed to an all-time high, reaching $2,994 on Friday, fueled by global trade tensions and expectations of a Federal Reserve policy shift.
The precious metal is on track for a 2.5% weekly gain, marking its second consecutive week of increases. Investors are seeking safety in gold amid uncertainty surrounding U.S. tariffs and potential economic turbulence.
“The market’s risk-off sentiment reflects growing concerns that trade tensions will escalate before they ease, pushing investors toward gold as a hedge against volatility,” said IG market strategist Yeap Jun Rong.
The rally has also been driven by expectations that the Fed may shift toward monetary easing, further supporting non-yielding assets like gold. Traders are now closely watching the upcoming Federal Reserve meeting next Wednesday, where interest rate decisions could set the course for gold’s next major move.
Trade War Intensifies, Pushing Gold Toward $3,000
One of the biggest catalysts for gold’s rally has been the latest developments in the U.S.-led trade war. The European Union retaliated against U.S. steel and aluminum tariffs by imposing a 50% tax on American whiskey exports. In response, President Donald Trump threatened a 200% tariff on European wine and spirits.
The uncertainty surrounding global trade policies has increased market jitters, with investors piling into gold as a safe-haven asset.
Gold prices have gained 2.5% this week, fueled by geopolitical risks.
The psychological $3,000 level is now in sight as market volatility persists.
Rising inflation concerns from trade tariffs add further bullish momentum.
Yeap Jun Rong noted that “as we approach the second quarter, reciprocal tariffs could spark another wave of market turbulence, making gold a highly attractive asset in an environment where safe alternatives are scarce.”
Trump’s tariff policies have historically contributed to inflation and economic uncertainty, factors that have repeatedly pushed gold to record highs throughout 2025. If trade tensions continue to escalate, gold’s upward trajectory may extend well beyond the $3,000 threshold.
Gold Price Outlook—Key Levels to Watch
As gold consolidates near record levels, traders are closely monitoring key technical levels. Gold is currently holding near $2,986, with the Fibonacci 0.236 retracement at $2,973 acting as immediate support. If prices remain above this level, further gains toward $3,009 and $3,023 are likely.
However, a failure to sustain momentum above $2,973 could lead to a pullback, with the next support zones at $2,960 (Fib 0.382) and $2,950 (Fib 0.5). The 50-day EMA at $2,924 serves as a crucial dynamic support, keeping gold’s bullish structure intact.
Immediate resistance: $2,994 (recent high)
Breakout target: $3,009 and $3,023
Support levels: $2,973, $2,960, and $2,950
Major psychological resistance: $3,000
If gold decisively breaks above $3,000, traders may look for a test of $3,036 in the short term. Conversely, failure to hold above current levels could result in short-term consolidation before the next major move.
With ongoing trade tensions and a highly anticipated Federal Reserve decision ahead, gold’s trajectory remains tied to global economic developments. Investors will be watching closely as the precious metal inches closer to a historic breakout above $3,000.
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