Photo by Jingming Pan on Unsplash
 

Gold (XAUUSD) is climbing toward fresh record highs as global instability fuels safe-haven demand. Rising tensions between the U.S. and Europe, driven by new tariff threats, have sparked fears of a broader trade conflict. At the same time, geopolitical risks in Eastern Europe and uncertainty around U.S. monetary policy are deepening market anxiety. A weakening Dollar and persistent inflation concerns further support the rally. With multiple drivers aligning, gold remains firmly positioned for continued upside.
 

Gold Climbs toward Record Highs on US-Europe Tariff Threats and Global Tensions

Gold is approaching new record highs as global tensions intensify and safe-haven flows accelerate. President Trump’s unexpected tariff threat against eight European countries has added fresh fuel to global trade war fears. These countries, which opposed his controversial Greenland acquisition plan, now face a 10% tariff beginning February 1, with a possible increase to 25% by June. European leaders have condemned the move, and France has hinted at countermeasures, increasing the risk of a broader trade conflict between the US and Europe.

Rising geopolitical tensions are adding fresh urgency to safe-haven demand, with gold benefiting from renewed global instability. Ukraine's foreign minister warned of possible Russian strikes on critical nuclear infrastructure, while President Zelensky stated that Russia shows no interest in diplomacy or peace efforts. This rise in military tensions has heightened global anxiety and strengthened the case for holding gold as a protective asset. Historically, gold has performed well during periods of conflict and crisis, and this environment is proving to be no exception.

Meanwhile, shifting U.S. monetary policy expectations are adding another layer of support for gold. President Trump indicated he may replace Federal Reserve Chair Jerome Powell, while suggesting Kevin Hassett could remain as head of the National Economic Council. The remarks introduced fresh uncertainty about the Fed’s direction. Although the Fed appears less likely to ease soon, the Dollar has struggled to find support. This continued softness, combined with persistent inflation concerns, keeps the outlook tilted in favor of gold.
 

Gold Maintains Uptrend with Successive Breakouts and Shallow Pullbacks

The gold chart below shows a steady and well-defined uptrend, shaped by a series of clear breakout phases. Each period of consolidation has been followed by a strong upward move, confirming the durability of the trend. Since early 2024, gold has climbed in a step-like pattern, pausing at resistance, building support, and then pushing higher. This consistent progression reflects strong and sustained buying interest.
 

(Click on image to enlarge)

Initially, the first major breakout took place in mid-2024, following an extended period of sideways movement. Later phases repeated the same structure, featuring tight consolidation followed by a breakout and sharp move higher. Pullbacks remained shallow and short-lived, indicating persistent buying on dips. Former resistance levels consistently turned into support, signaling a strong and sustained trend.

Most recently, gold moved decisively above the $4,400 to $4,500 range and continued to climb. Recent price action points to a fresh breakout attempt near the $4,700 level. With little resistance overhead, the path appears open for further upside. The uptrend remains strong, supported by rising lows, consistent follow-through, and growing momentum. If this breakout holds, gold may be entering a new phase of its long-term bullish cycle.
 

Gold Forecast: Global Risks and Trade Tensions Support Continued Upside

Gold remains on a strong upward path as global risks intensify and market uncertainty deepens. Trade tensions, geopolitical instability, and monetary policy shifts continue to fuel demand for safe-haven assets. At the same time, gold’s technical structure shows sustained momentum and consistent breakout behavior. With both macro and chart-based signals aligned, gold appears well-positioned to extend its rally and push toward new record highs in the days ahead.

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