Gold Hits $3,086: 3 Key Reasons Traders Are Going Bullish in 2025
Gold prices surged to a record $3,086.80 on Friday, spurred by renewed concerns over global trade tensions as U.S. President Donald Trump prepares fresh tariff actions set for April 2.
The heightened uncertainty surrounding international trade policies has investors flocking toward the precious metal, widely considered a safe-haven asset during periods of geopolitical turmoil.
Gold futures rose sharply by 0.8%, signaling strong bullish sentiment among investors. Market watchers anticipate further upward movement, eyeing the psychological barrier of $3,100 per ounce. http://Capital.com ‘s financial market analyst Kyle Rodda highlighted multiple factors fueling the current bullish run: trade policies, geopolitical tensions, and slowing economic growth—all factors directing investor confidence toward gold.
Analyst Edward Meir of Marex pointed out the lingering uncertainty about potential retaliatory trade measures from international counterparts, further boosting gold’s appeal as a safe-haven asset. Notably, Canada’s Prime Minister Mark Carney warned of undisclosed retaliatory measures if the U.S. implements new automotive tariffs, escalating the global trade standoff and potentially triggering higher inflation.
Technical Indicators Signal Continued Momentum
From a technical standpoint, gold remains robustly bullish, evidenced by a clear “Three White Soldiers” candlestick formation observed on the 2-hour chart. This pattern signals sustained buying momentum and strong market confidence in further price appreciation. Additionally, gold continues its ascent within a distinct upward trading channel, underlining the prevailing bullish sentiment among traders.
The metal has recently surpassed the critical resistance level at $3,060, effectively invalidating a previously observed double-top pattern, which traditionally signals a bearish reversal. This breakout reinforces bullish market expectations and sets the stage for potential additional gains.
Further technical support comes from gold’s current trading position comfortably above the 50-period Exponential Moving Average (EMA), currently sitting at $3,036, providing a solid dynamic support level that further strengthens bullish convictions.
Gold broke above crucial resistance at $3,060
Formation of a “Three White Soldiers” bullish pattern
Clear upward channel with dynamic EMA support at $3,036
Caution Advised: RSI Signals Potential Pullback
Despite the overwhelmingly positive sentiment, traders should exercise caution due to signs of overextension. The Relative Strength Index (RSI) is currently in the overbought region at 75, which typically indicates potential short-term corrective movements or price consolidation.
BMI analysts maintain a bullish outlook, emphasizing gold’s resilience driven by persistent uncertainties around U.S. fiscal and trade policies, global inflation concerns, and geopolitical conflicts. Richmond Federal Reserve President Tom Barkin recently noted the Fed’s current policy stance as “moderately restrictive,” fitting given the high degree of macroeconomic uncertainty and rapidly evolving policy environment.
As markets await critical economic data, particularly the upcoming U.S. personal consumption expenditures report, gold’s attractiveness as a hedge against economic instability continues to solidify its position as a preferred asset among traders.
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