Photo by Rene Böhmer on Unsplash
 

Gold (XAUUSD) is climbing steadily, nearing record highs around $5,050, as rising global uncertainty continues to fuel safe-haven demand. The failure of peace talks, looming EU–U.S. tariffs, and uncertainty over Fed leadership have pushed investors toward gold. At the same time, expectations of easier monetary policy continue to support the bullish outlook. With momentum building, gold remains well-positioned for further gains in the days ahead.
 

Gold Extends Rally on Geopolitical Tensions and Fed Rate Cut Prospects

Gold is pushing higher, with price advancing steadily toward record levels near $5,050. The sustained rally is being fueled by deepening geopolitical risks and rising demand for safe-haven assets. Tensions in Eastern Europe continue to escalate. The recent three-way peace talks between Russia, Ukraine, and the U.S. in Abu Dhabi ended without a breakthrough. With no ceasefire in sight and another round of talks expected next week, the conflict remains a major driver of geopolitical risk. This backdrop supports gold’s appeal as a defensive asset.

Adding to market stress, President Trump announced fresh tariffs on U.S. allies. Starting February 1, a 10% tariff will apply to goods from several European countries, including Germany, France, and the UK. By June, the rate will rise to 25%. In response, the EU has prepared retaliatory tariffs on $100 billion worth of U.S. goods. This standoff has revived fears of a full-blown transatlantic trade war.

Attention has shifted to the Fed Chair nomination, with Trump expected to make an announcement shortly. Markets are leaning toward a dovish outcome, particularly if the nominee supports Trump’s push for lower interest rates. A more accommodative stance would likely extend rate cuts, lowering the opportunity cost of holding non-yielding assets like gold. This policy outlook continues to support gold’s bullish momentum.
 

Gold Maintains Uptrend within Rising Channel as Bullish Momentum Builds

The gold chart below shows a well-defined ascending channel that has guided price action since mid-2025. Within this structure, gold has maintained a steady uptrend, forming higher highs and higher lows. Pullbacks have remained shallow, with price consistently rebounding near key support levels. This consistent behavior reflects strong underlying demand. As long as price holds within this structure, the broader trend remains firmly intact.
 

(Click on image to enlarge)

Over time, multiple cup-shaped bases have emerged within the structure, marking distinct phases of accumulation. Each base reflected consolidation that was followed by strong upward continuation. These patterns highlight sustained buying interest and firm bullish sentiment, even during short-term pullbacks. This consistent price behavior highlights the strength and reliability of the broader trend.

Currently, price is approaching the upper boundary of the channel once again, targeting the $5,200 zone. The prior test of this upper band triggered a temporary pullback. If momentum holds, another breakout attempt may follow. However, overbought conditions near the channel top could trigger consolidation. Support now rests near the mid-channel level around $4,800, with deeper support near $4,500.
 

Gold Outlook: Bullish Trend Supported by Global Risks and Fed Policy Shift

Gold remains in a powerful uptrend, supported by geopolitical instability, renewed tariff conflicts, and expectations of lower U.S. interest rates. These overlapping risks continue to fuel safe-haven demand, driving prices higher. Market uncertainty remains elevated, keeping gold firmly in focus as a defensive asset. As momentum builds, gold appears poised to challenge new record highs in the days ahead. 

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