Gold prices (XAU/USD) continue their upward trend, reaching new highs. The price remains close to its all-time peak, last recorded in February. This bullish momentum is fueled by rising concerns over US President Donald Trump's trade tariffs and expectations of multiple Federal Reserve interest rate cuts in 2025. Additionally, a weakened US Dollar further supports gold’s rally.

Market Factors Driving Gold Prices

The market sentiment remains tilted toward safe-haven assets, benefiting gold. Concerns over US President Donald Trump’s aggressive trade policies create economic uncertainty. Investors turn to gold as a hedge against market instability. The tariffs imposed by the US on steel and aluminum imports raise fears of a trade war. In response, the European Union and Canada announced retaliatory tariffs on a significant volume of US goods. A cooling US labor market and signs of easing inflation increase speculation about Federal Reserve rate cuts. Market expectations now suggest multiple rate cuts in the coming months.

The US Dollar remains weak, trading near its lowest level in months, making gold more attractive to investors. Market participants await the next economic reports for further short-term price movements.

Technical Analysis of Gold Price Movement

The weekly chart of XAU/USD highlights a strong bullish trend within an ascending wedge pattern. This pattern indicates a potential breakout, with gold approaching the psychological $3,000 resistance level.

Support and Resistance Levels: Gold finds strong support near the lower trend line of the ascending wedge. The resistance level remains around $3,000, which could trigger further buying pressure if breached.

Trend Momentum: The continuous series of higher highs and higher lows confirm an ongoing bullish trend. The price remains well above key moving averages, signaling strong upward momentum.

Potential Scenarios: If gold breaks above the $3,000 resistance, further gains toward $3,100 are likely. However, failure to sustain above this level may lead to a pullback toward $2,850 support.

Conclusion

Gold prices maintain their bullish momentum, supported by trade tensions, a dovish Federal Reserve outlook, and a weakening US Dollar. Market fears surrounding President Trump's tariffs drive investors toward gold as a safe-haven asset. Technical analysis suggests that the $3,000 resistance level is crucial for further price action. If this level is breached, gold could extend its rally. Traders will closely monitor upcoming economic data, for additional cues on market direction. To receive gold and silver trading signals, please subscribe here.

More By This Author:

Gold Price Surges Amid Economic Uncertainty And Safe-Haven Demand
Gold Prices Surge To New Highs Despite Overbought
Gold Price Surges As Geopolitical Tensions And US Tariffs Increase