Gold Price Skyrockets to Record Highs of $2,800 Amid Global Uncertainty
As the world grapples with economic uncertainty and geopolitical tensions, Gold price has surged to new record highs, hitting the $2,800 mark early on Friday. This meteoric rise is fueled by a combination of factors, including renewed tariff threats from US President Donald Trump, a weakening US Dollar, and disappointing US growth figures.
Factors Driving Gold Price Surge:
- Trump’s Tariff Threats: President Trump’s recent warnings of imposing tariffs on various countries have heightened market uncertainty, driving investors towards safe-haven assets like Gold.
- Weakening US Dollar: The Dollar’s lack of bullish momentum, coupled with Trump’s tariff threats, has further boosted the appeal of Gold as a safe-haven asset.
- Disappointing US Growth Figures: The US economy showed a larger-than-expected slowdown in the final quarter of 2024, leading to renewed expectations of dovish Fed policies and supporting Gold prices.
Implications of Trump’s Trade Policies on Gold Price:
President Trump’s trade policies, particularly his tariff threats on key trading partners, are perceived as inflationary. This perception has driven investors towards Gold as a hedge against inflation and market volatility.
Traders are closely monitoring the US core PCE Price Index data, the Fed’s preferred inflation measure, for insights into the central bank’s future policy decisions. The uncertainty surrounding global trade dynamics and economic growth continues to support Gold’s status as a safe-haven asset.
Technical Analysis of Gold Price:
On the technical front, Gold price is showing strong bullish momentum, with the potential for further gains. Key technical indicators include:
- RSI: The 14-day Relative Strength Index (RSI) suggests that there is room for further upside before Gold enters overbought territory.
- SMA Cross: The Bull Cross between the 50-day and 100-day Simple Moving Averages (SMA) confirms the bullish trend in Gold price.
Gold price is currently targeting the $2,850 level, with immediate support at $2,754 and further downside support at $2,731 and $2,714.
US-China Trade War FAQs
For a deeper understanding of the global economic landscape, here are some FAQs related to the ongoing US-China trade war:
What is a Trade War?
A trade war is an economic conflict between two or more countries characterized by extreme protectionism, including the imposition of trade barriers such as tariffs.
Overview of the US-China Trade War:
The US-China trade war began in 2018, with President Trump imposing tariffs on China over alleged unfair trade practices. Tensions escalated, leading to the signing of the US-China Phase One trade deal in January 2020. However, the conflict has resurfaced with Trump’s return to office in 2025.
Impact of US-China Trade War:
The resurgence of tensions between the US and China is expected to disrupt global supply chains, reduce investment, and contribute to inflationary pressures, affecting the global economic landscape.