Gold (XAU/USD) Hits Record High as Tariff Shock Fuels Safe-Haven Demand

Gold prices climbed to new heights on Thursday as investors rushed toward safe-haven assets in response to a surprise escalation in U.S. trade policy.

The move came after President Donald Trump introduced steeper-than-expected import tariffs, intensifying an already tense global trade environment.

On Wednesday, the White House rolled out a 10% baseline tariff on all U.S. imports, along with higher duties targeting key trading partners. The sweeping measures have left global markets unsettled and sparked concerns over rising inflation and a possible slowdown in the U.S. economy.

The administration also confirmed that 25% tariffs on global car and truck imports will begin on April 3, with additional levies on automotive parts scheduled for May 3.

Gold’s Rally Built on Broader Market Fears

Gold’s sharp rally—now up more than 19% this year—isn’t just about tariffs. The metal is benefiting from a perfect storm of risk factors, including:

• Slowing global growth

• Expectations for Fed rate cuts

• Ongoing geopolitical uncertainty

• Persistent central bank demand

Some investors are anticipating that central banks will start diversifying away from U.S. dollar assets, opting instead to hold more gold as a hedge.

Labor Market Holding Up—for Now

In the background, U.S. private sector job data for March came in stronger than forecast, but economists remain cautious. Signs of a gradually cooling labor market continue to emerge, especially as businesses brace for slower growth in the months ahead.

Attention now turns to Friday’s non-farm payrolls report, which could be a key signal for how the Federal Reserve responds to the evolving economic outlook.

Gold Technical Picture: Bulls Remain in Control

From a technical standpoint, gold is trending within a steady ascending channel, holding above the important $3,100 support level. Prices briefly touched $3,163 and are now consolidating just below $3,168—the next major resistance zone.

If gold clears this level, the door could open toward $3,200, with further upside potential up to $3,232, the top of the current channel.

On the flip side, any pullback would likely find support near $3,112, with deeper buying interest around $3,083 and $3,033, where previous buyers have stepped in.

Bottom Line

Gold is clearly benefiting from the current wave of market uncertainty. With Trump’s aggressive tariffs rattling markets and inflation concerns building, investors are playing defense—and gold remains their asset of choice. If global tensions persist and the Fed leans toward easing, the path toward $3,200 or higher looks increasingly realistic.