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Gold has broken through the historic 5,000 USD per troy ounce mark, rising above 5,075 USD for the first time. The metal continues its record rally as investors aggressively shift into defensive assets amid escalating trade and geopolitical uncertainty.

The main catalyst was renewed rhetoric from US President Donald Trump. Over the weekend, he stated that Washington would seek sovereignty over parts of Greenland where US military bases are located. These comments reignited market anxiety, coming just days after a temporary easing of tariff threats against several European countries.

Further pressure on global markets followed Trump’s warning to Canada. He stated that all Canadian exports to the US could face 100% tariffs if Ottawa finalises a trade agreement with China. The statement came a week after Canadian Prime Minister Mark Carney announced a preliminary deal with Beijing, which involves a mutual reduction in tariffs.

Geopolitical risks also remain elevated. Ukraine and Russia held another round of US-mediated talks without reaching an agreement, although both sides signalled readiness to continue negotiations next weekend.

As a result, rising geopolitical tensions and aggressive trade threats have sharply increased capital inflows into gold, further strengthening its role as the primary global safe-haven asset.
 

Technical Analysis
 

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On the H4 XAUUSD chart, gold has confidently broken above 5,000 and is now developing a strong bullish wave towards the 5,215 level. After reaching this area, a corrective pullback towards 5,000 is possible. The MACD confirms strong upside momentum, with the signal line at highs and pointing firmly upwards.
 

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On the H1 chart, the price has broken and consolidated above the 5,050 level, which is acting as support. The trend is expected to extend towards 5,200. The Stochastic oscillator supports this bullish scenario, with the signal line above 50 and continuing to rise.
 

Conclusion

Gold has entered a new historical phase above 5,000 USD, driven by escalating geopolitical risks and aggressive US trade rhetoric. As long as uncertainty around global politics and trade persists, gold is likely to remain strongly supported, with further upside potential despite the risk of short-term technical corrections.

By RoboForex Analytical Department

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