Gold Breaks $3,000 Again – Can the Rally Continue to $3,200?
Gold prices have surged past $3,000 for the second time this week, fueled by economic uncertainty and renewed tariff concerns under President Donald Trump’s trade policies.
The yellow metal remains a go-to hedge against inflation, geopolitical risks, and a weakening U.S. dollar, which is hovering near a five-month low.
According to Marex analyst Edward Meir, gold’s momentum is being driven by technical buying, with no clear resistance levels in sight. So far this year, gold has gained over 14%, breaking new records 14 times since January. Analysts remain bullish, with ANZ revising its three-month price target to $3,100/oz and a six-month target of $3,200/oz.
Tariff Uncertainty and Weak Dollar Fuel Gold’s Rise
Gold’s record rally comes amid renewed tariff tensions. Trump has announced sweeping 25% tariffs on steel and aluminum, set to take effect in April, adding pressure to global trade markets. Investors are turning to gold as a safe-haven asset, concerned that escalating trade disputes could slow economic growth and drive inflation higher.
Meanwhile, the U.S. dollar index (DXY) remains under pressure, trading near a five-month low. A weaker dollar makes gold more attractive to foreign buyers, further driving demand. The combination of policy uncertainty, a weaker dollar, and technical momentum is keeping gold’s bullish trend intact.
Factors fueling gold’s rally:
U.S. tariffs creating economic uncertainty
Weakening dollar boosts gold’s appeal
Safe-haven demand amid geopolitical instability
Central bank buying remains strong
Geopolitical Risks Add More Fuel to Gold’s Surge
Beyond trade tensions, geopolitical risks are adding to gold’s rally. Recent Israeli airstrikes in the Middle East have heightened fears of regional conflict, leading investors to seek stability in gold.
Additionally, upcoming Federal Reserve projections will offer clues on how Trump’s economic policies may impact future interest rate decisions. Concerns over a potential recession and rising inflation have further bolstered gold’s appeal as a long-term store of value.
With these factors at play, analysts believe gold could push even higher if uncertainty persists. Capital.com ’s analyst Kyle Rodda highlights that geopolitical tensions could add to the growing list of factors driving gold’s price up.
Gold Price Technical Outlook – $3,006 Consolidation
Gold (XAU/USD) is currently consolidating around $3,006, trading within an ascending channel on the 2-hour chart. The 50-period EMA at $2,974 serves as dynamic support, reinforcing bullish momentum.
A breakout above $3,017 could open the door for further gains toward $3,032 and $3,047. However, a failure to hold above resistance could trigger a pullback toward key support at $2,999.
Key Levels to Watch:
Resistance: $3,017, $3,032, $3,047
Support: $2,999, $2,982, $2,966
Overall, gold remains bullish, but traders should watch for volume-backed breakouts or breakdowns. A sustained push above $3,017 could signal another leg higher, while a drop below $2,974 may indicate a shift in momentum.
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