Gold On Fire —$3,500 in Sight After Breakout

Gold prices surged to yet another all-time high on Monday, climbing to $3,462 per ounce as investors piled into safe-haven assets. The move is being fueled by two powerful forces: a rapidly weakening U.S. dollar and renewed geopolitical anxiety, particularly around U.S.-China trade friction.

The U.S. Dollar Index just hit its lowest level in three years, making gold more attractive for global buyers. That’s especially important at a time when former President Donald Trump is back in headlines, criticizing Federal Reserve Chair Jerome Powell and threatening more aggressive tariffs.

Meanwhile, China didn’t hold back. In a sharp weekend statement, officials accused the U.S. of “weaponizing” tariffs and warned global partners that deepening ties with Washington could come at a cost.

Momentum Still in Play—But Is a Breather Coming?

Analysts say this latest rally is rooted in fear, but supported by technical strength. “We’ll likely see some profit-taking, but the overall direction for gold still points higher,” said David Meger, director of metals trading at High Ridge Futures.

Kitco’s Jim Wyckoff offered a more cautious take. “When we start seeing wide daily price swings like this, it often means a short-term top could be near—not necessarily in price, but in timing,” he said.

That said, the trend remains intact. Gold continues to trade within a rising channel, and so far, buyers are stepping in on every dip.

Trade Setup: $3,512 Could Be the Next Stop

For traders looking to ride this momentum, the recent breakout above $3,414 confirms the bull case. Gold is currently testing resistance at $3,476, with a clean move above that level likely opening the path toward $3,512.

Key Levels to Watch:

• Buy Entry: Above $3,414 (with strong candle close and volume)

• Targets: $3,476 (initial), $3,512 (extended)

• Stop Loss: Below $3,369 to manage risk

• Pullback Buy Zone: Between $3,400 and $3,414

The 50-period EMA, now sitting near $3,331, continues to provide solid trend support. MACD indicators are showing firm upward momentum, though rising volatility suggests traders should stay nimble.

Bottom Line:

The backdrop of global instability, central bank caution, and a falling dollar continues to fuel gold’s appeal. As long as macro risks linger, the path of least resistance appears to remain upward—at least for now.