- Despite the US holiday this week, gold futures approached a new record high. According to gold trading company platforms, gold prices have risen this year with increased safe-haven demand amidst tariffs imposed by President Donald Trump.
- Spot gold prices rose to the resistance level of $2937 per ounce, near its all-time highs when it recorded the resistance level of $2943 per ounce.
- In general, the price of gold has risen by about 8% this month and by about 12% in 2025.
Why did gold prices rise again?
According to gold market trading, the catalyst for the latest price rise was the tariffs imposed by US President Trump. Since taking office, Trump has threatened to impose 25% tariffs on Canada and Mexico, signed a 25% tariff on all steel and aluminium imports, imposed a 10% tariff on China, and approved a presidential memorandum imposing reciprocal tariffs on all US trading partners. This has created a climate of uncertainty, driving investors to gold and other precious metals, even as trade measures have supported the US dollar. “We are seeing increased safe haven demand due to the turbulent nature of the Trump administration and we also have a bullish stance on the chart,” according to gold experts.
In terms of performance, the gold market has largely ignored the Federal Reserve's decision to keep US interest rates high for longer. With inflation remaining high and the US central bank reducing its expectations for interest rate cuts, financial markets do not expect the next interest rate cut until September.
Expectations of the Federal Reserve's policy on Wall Street helped send US Treasury bond yields soaring. The yield on the 10-year US bond rose by six basis points to 4.535% on Tuesday. While the dollar has declined this year after quickly evaporating its gains immediately after Trump's inauguration, the gold market is generally sensitive to both interest rates and the US dollar, as the former can affect the opportunity cost of holding non-yielding bullion and the latter can make gold more expensive for foreign investors to buy.
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Trading Tips:
The path of gold is upward and strong. Therefore, we still recommend buying gold from every downward level without taking risks and monitoring the continuation of its gain’s factors, as in the event that prices are exposed to sell-off for profit-taking, it may be strong.
US stock indices record records
During yesterday's session and through stock trading companies' platforms, US stock indices moved to record levels, as the Standard & Poor's 500 index rose by 0.2% to close at a new record high, while the Nasdaq 100 and the Dow Jones index ended trading near a stable level. Obviously, its gains came as investors weighed the prospect of an end to the Ukraine war alongside developments surrounding tariffs and interest rates. Weakness in consumer discretionary and communications services, highlighted by a 2.7% drop in Meta Platforms and a 0.9% drop in Amazon, weighed on the broader market.
Energy stocks, however, outperformed, with Exxon Mobil up 1.8% and Energy Transfer up 1.6%. Market participants were closely watching policy moves from the Federal Reserve and the White House, particularly on tariffs and interest rates.
Treasury yields also rose, with the 10-year Treasury note yielding 4.54%, as traders sought more clarity on the path of US interest rates from the Fed. Earnings season remained a focal point, with reports from Baidu and Alibaba adding to global economic uncertainty.
Gold Price Technical Analysis and Expectations Today:
According to trading on the daily chart and gold analysts' expectations, the general direction of gold prices is still strongly upward. Although its recent gains have moved the technical indicators towards strong overbought levels, the continuation of gold's gains factors may convince the bulls to move strongly towards the historical psychological peak of $3,000 per ounce as soon as possible. Clearly, that will accelerate this is the increase in central banks' demand for buying gold bullion and the continuation of geopolitical and global trade tensions, as gold is one of the most important safe havens. Decisively, we still adhere to the strategy of buying gold from every downward level.
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