Gold prices continue their historic rally, reaching fresh record highs as geopolitical risks and trade war fears drive investors toward safe-haven assets. The latest surge follows US President Donald Trump’s renewed tariff threats against BRICS nations, further fueling uncertainty in global trade. Meanwhile, rebounding US Treasury bond yields are lending support to the US Dollar, capping some of gold’s upside potential. As traders look ahead to key US economic data, including the PCE Price Index, today’s analysis examines the fundamental and technical drivers shaping gold’s trajectory.
Gold continues its upward march, nearing the $2,800 mark as fresh fund inflows drive demand amid rising trade war concerns and geopolitical uncertainty. President Trump’s latest tariff threats, specifically targeting BRICS nations with potential 100% tariffs if they attempt to replace the US Dollar in international trade, have spurred investors to seek safe-haven assets such as gold, the USD, and US government bonds.
The US economy posted slower growth in Q4, with GDP rising at an annualized rate of 2.3%, falling short of the expected 2.6% and down from 3.1% in the previous quarter. This data reinforces expectations of economic moderation, keeping markets on edge ahead of the US PCE Price Index report. Any signs of inflationary pressure could further influence Federal Reserve policy expectations and impact gold prices.
Gold prices are holding strong near record highs after decisively surpassing the symmetrical triangle target of $2,785 and the previous all-time high of $2,790. The technical indicators suggest further upside potential, with the 14-day Relative Strength Index (RSI) at 67, still below overbought territory, signaling room for continued gains.
A Bull Cross formation—where the 50-day and 100-day moving averages confirm an uptrend—remains in play, reinforcing the bullish bias. Gold now needs a sustained move above $2,800 to target the next resistance at $2,850.
Gold’s record-breaking rally continues as geopolitical tensions and economic uncertainty drive demand for safe-haven assets. While technical indicators suggest room for further upside, traders should watch for potential resistance at $2,800 and $2,850, while key support levels at $2,785 and $2,750 remain critical for maintaining bullish momentum.
As markets await the US PCE Price Index and further Federal Reserve commentary, gold’s trajectory will depend on how inflation data impacts expectations of future monetary policy. With ongoing trade war risks and economic moderation in focus, gold remains a key asset for risk management and portfolio diversification.