Gold prices hit a record high on Tuesday, surpassing $3,000 per ounce for the second time in a week. This significant rise comes as investors seek a safe haven amid growing economic concerns stemming from the tariff policies announced by US President Donald Trump.
Notable gains in gold prices
Spot gold rose 0.2% to $3,006.88 per ounce at 05:25 GMT. It had hit a record high of $3,016.92 per ounce earlier in the session. US gold futures also rose 0.4% to $3,017.20 per ounce.
Gold surpassed the $3,000 per ounce mark for the first time in history on Friday. This rise was driven by rising global economic and political tensions, which prompted many investors to turn to gold as a safe-haven investment. The Economic Impact of Trump’s Policies
According to analysts, gold’s rise was supported by several factors. Edward Meir, an analyst at Marex, pointed out that the continued weakness in the US dollar and uncertainty regarding US tariffs contributed to this remarkable rise. Meir added that the market is witnessing intense technical buying in the absence of any clear resistance on the charts.
The US dollar index fell to a four-month low, making XAU more attractive to foreign buyers. Historically considered a hedge against geopolitical volatility, gold has risen more than 14% since the beginning of the year. Gold has also reached new record highs as global trade tensions escalate.
Trump, Trade Policies, and Their Impact on Gold
Since US President Donald Trump took office, the United States has imposed numerous tariffs on various goods, starting with the 25% tariffs on steel and aluminum in February. Trump has indicated plans to impose further tariffs on other products, raising concerns about the impact of these policies on the global economy.
Gold Price Forecast: Continued Rise Amid Geopolitical Tensions
ANZ Bank reported that it has raised its short-term gold price forecast to $3,100 per ounce, predicting that the price will reach $3,200 per ounce within six months. This forecast is driven by escalating geopolitical tensions, monetary policy easing by central banks around the world, and massive XAU buying by these banks.
These forecasts follow various analyses indicating that the uncertainty caused by the US-China trade war, along with the repercussions of tariffs, will continue to directly impact gold markets. This will boost demand for the precious metal as a safe haven amid global economic concerns.
Economic Forecasts Amid Escalating Concerns
A group of economists recently issued forecasts for US growth this year. They indicated the possibility of an economic slowdown, potentially leading to a recession. Under these conditions, experts expect inflation to rise, which will boost demand for gold as a hedge. In addition to economic factors, reports indicate that tensions may contribute to increased regional tensions, increasing the likelihood of escalating geopolitical concerns. These factors combined reinforce the upward trend in gold prices.
Gold Markets and Price Forecasts
Regarding XAU price forecasts, analysts expect gold to continue its upward trend over the coming period. They also indicated that gold may find support at the $3,000 per ounce level, with strong indications that the market may continue its upward trend in the coming days.
If gold continues its upward trend, it may face resistance in the $3,050 area. On the other hand, if the market experiences a correction, XAU may face support levels near $2,980 per ounce, and then may decline to $2,956 at the previous triangle resistance level.
Geopolitical Risks and Their Impact on Gold Markets
Geopolitical risks continue to directly impact XAU markets. The Middle East remains a major source of tension, which could contribute to increased demand for XAU. Meanwhile, US-China tensions and trade threats could increase market volatility, boosting demand for gold as a safe hedge against these risks.
Silver and Platinum: Parallel Movements in Metal Markets
In other metal markets, spot silver rose 0.1% to $33.85 per ounce, while platinum rose 0.2% to $1,002.50. Palladium also rose 0.4% to $968.96. These metals have experienced similar movements to XAU, amid the same economic and geopolitical factors that influence markets.
Forecast Summary
Gold prices remain on a steady upward trend, supported by growing economic and geopolitical concerns. With Trump’s trade policies continuing, along with tensions in the Middle East, XAU is likely to remain a preferred safe haven for investors. It remains to be seen how the economic and political situation will evolve in the coming weeks, and whether these factors will continue to push XAU prices to new record highs.
What does the price of gold depend on?
The price may move as a result of a wide range of factors. Geopolitical turmoil or fears of a severe economic recession could cause gold prices to rise rapidly due to its safe-haven status. As a non-yielding asset, XAU tends to rise with lower interest rates, while a higher cost of money typically weighs on the yellow metal. However, most movements depend on the behavior of the US dollar (USD), as the asset is priced in US dollars (XAU/USD). A stronger dollar keeps gold prices in check, while a weaker dollar is likely to push XAU prices higher.
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