Gold Soars to Record High on Trade Tensions and Stagflation Fears – $3,500 in Sight
Spot gold prices surged to a record high of $3,357 ahead of the Easter holiday, driven by robust safe-haven demand amid intensifying U.S.-China trade tensions.
The US Dollar Index (DXY) remains weak at 99.02, with technical patterns pointing toward increased uncertainty and a possible retreat to the 88.00–94.00 range.
Gold’s rally is underpinned by market fears over President Trump’s proposed tariffs on electronics and pharmaceuticals, in addition to the sweeping 145% levy on Chinese goods, met with a 125% retaliation from Beijing.
Strong US retail sales, up 4.6% YoY, suggest consumers may be front-loading purchases, anticipating further tariff impacts.
Fed Chair Powell’s hawkish tone has added to the volatility, raising stagflation concerns and underscoring the tension between price stability and employment.
If inflation remains elevated while growth slows, safe-haven demand for gold could intensify.
Technically, gold’s RSI remains bullish, with MACD and the ADX reinforcing the current uptrend.
The next target stands at $3,500, though pullbacks may offer fresh entry points should safe-haven appetite persist.
Daily Chart Spot Gold
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