Gold (XAU/USD) shot up to a new all-time high above $2,945 on Wednesday, extending its upward trend for the third straight day. The bull run was propelled by increased geopolitical tensions after US President Donald Trump re-emphasized his vow to implement 25% tariffs on auto, semiconductor, and drug imports. Naysays regarding US-Russia tensions, combined with market volatility pre-Federal Reserve’s FOMC Minutes report, contributed to the allure of gold as an insurance asset. Technicals present a possible challenge in the neighborhood of $2,951 and $2,966, though any dovish undertones the Fed may carry could further move gold towards psychological $3,000. There is still possible reversal, nonetheless, if sentiment responds to the economic data or Fed policy tilt.
KEY LOOKOUTS
• The threat of 25% tariffs on automobiles, semiconductors, and drugs inspires market uncertainty and pushes gold to all-time highs.
• Federal Reserve January meeting minutes may guide gold’s performance, with speculators looking for clues on next interest rate actions.
• Gold is resisted at $2,951 and $2,966, with potential to push further to $3,000 in case of continuous bullish momentum.
• Safe-haven demand is boosted by US-Russia tensions and Trump’s hardline on Ukraine, supporting gold prices in the face of worldwide uncertainty.
Gold’s record-setting sprint to a new all-time high of over $2,945 shows the market’s responsiveness to economic and geopolitical events. With Trump’s return to tit-for-tat tariffs shaking markets and uncertainty hanging over US-Russia relations, investors are hedging against volatility with gold. At the same time, the Federal Reserve’s next FOMC Minutes release provides further anticipation, as any sign of policy changes could influence market mood. Although gold’s upward trend is still intact, resistance levels around $2,951 and $2,966 may hinder further advances unless a dovish Fed or rising tensions provide further impetus for the rally.
Gold rockets above $2,945 on Trump tariff plans and geopolitics. Market direction is now expected from the Fed’s FOMC Minutes.
• XAU/USD rockets above $2,945, its third day of advance amidst global uncertainty.
• The U.S. President reaffirms 25% tariffs on automobiles, semiconductors, and pharmaceuticals, heightening market fears.
• Trump’s aggressive stance on Ukraine and US-Russia relations further contributes to investor uncertainty, supporting gold’s safe-haven status.
• Minutes of the Federal Reserve’s January meeting may affect gold’s direction based on signals about interest rate policy.
• Gold has strong resistance at $2,951 and $2,966 levels, with possibilities of a run to $3,000.
• The 10-year benchmark yield is just shy of 4.56%, affecting the direction of gold as market players determine risk mood.
• Koza Altin’s plan to make 40+ tons of gold in five years reflects the industry’s solid demand and prospects for growth.
Gold’s rise to an all-time new high is a sign of increasing investor worries on geopolitical tensions and economic policies. The recent gold price boost follows U.S. President Donald Trump reaffirming his decision to impose 25% tariffs on automobile, semiconductor, and pharmaceutical imports. The decision has augmented concerns over trade disruption, and investors are resorting to the safety of gold as a safe-haven instrument. Furthermore, Trump’s tough statements on Ukraine have contributed to the uncertainty in the market, particularly after the initial negotiations between U.S. and Russian leaders failed to defuse tensions. In this context, investors and traders continue to pour into gold as a safe-haven asset against economic turmoil.
XAU/USD Daily Price Chart
TradingView Prepared by ELLYANA
Beyond geopolitics, market participants are also closely watching the Federal Reserve, as its upcoming FOMC Minutes release could shape future economic policies. While several Fed officials have signaled that interest rates remain at reasonable levels, inflationary concerns persist. Gold’s ongoing strength reflects the broader uncertainty in financial markets, where investors remain cautious about global economic trends. Furthermore, gold demand continues to be strong, with Turkish miner Koza Altin detailing plans to boost production over the next few years. With fears over trade, politics, and monetary policy escalating, gold is still favored as a hedge asset for stability and long-term protection.
TECHNICAL ANALYSIS
Gold’s move through $2,910 has bolstered bullish sentiment, taking prices to a new all-time high above $2,945. The next important resistance points are at $2,951 and $2,966, with a likely push to the psychological $3,000 if purchasing pressure remains. But in case gold meets with rejection near these levels, a retreat to near-term support at $2,921 could happen, and further weakness might follow at $2,906. The Relative Strength Index (RSI) is indicating conditions of overbuying, implying a possible correction or consolidation in the near term. The next FOMC Minutes release may serve as a pivotal catalyst, deciding whether gold continues its upward move or experiences a short-term retracement.
FORECAST
Gold’s historic rally above $2,945 has fueled speculation about whether the trend will persist or experience a pullback. If geopolitical tensions rise further, especially with Trump’s belligerent approach to tariffs and Ukraine, gold may experience further upside. Safe-haven demand continues to be robust as investors hedge against economic uncertainty, and any dovish tone by the Federal Reserve in its FOMC Minutes would further push gold towards the psychological $3,000 level. Moreover, ongoing inflation worries and robust central bank purchases across the globe could continue to lend support to gold’s bullishness in the coming days.
To the downside, gold is exposed to a near-term correction in case market sentiment changes. The next FOMC Minutes may provide a more sobering interest rate outlook that might dampen gold’s demand. Should the trend in rising bond yields hold, investors will rotate out of gold to move into more attractive-yielding instruments. Lastly, profit-taking at record levels may even cause gold to pull back temporarily, particularly if gold is unable to gain traction above key resistance points. A stronger dollar or positive economic indicators may also weigh on gold, causing possible retracements in the upcoming sessions.
