Gold price remains close to all-time high amid global trade war fears

Mitrade
Trending Articles
coverImg
Source: DepositPhotos

  • Gold price continues to attract safe-haven flows amid persistent worries about Trump’s trade tariffs.


  • Mostly upbeat US jobs data and inflationary concerns could allow the Fed to hold interest rates steady.


  • A modest US Dollar strength might further contribute to capping the upside for the XAU/USD pair. 


Gold price (XAU/USD) kicks off the new week on a positive note and remains well within striking distance of the all-time high touched on Friday amid persistent worries about US President Donald Trump's trade policies. In fact, Trump said on Sunday that he will announce new 25% tariffs on all steel and aluminum imports into the US, sparking concerns about a global trade war and underpinning the safe-haven precious metal.


Meanwhile, expectations that Trump's protectionist policies would reignite inflation turn out to be another factor that benefits the Gold price, which is seen as a hedge against rising prices. That said, mostly upbeat US employment details released on Friday and inflationary concerns should allow the Federal Reserve (Fed) to stick to its hawkish bias. This, along with modest US Dollar (USD) strength, might cap the non-yielding yellow metal. 


Gold price attracts buyers in reaction to US President Donald Trump’s fresh tariff threats



  • US President Donald Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminum imports into the US. Trump added that he would announce reciprocal tariffs on all countries and match their tariff rates, bolstering the safe-haven Gold price at the start of a new week. 


  • Russian Deputy Foreign Minister Galuzin said there are no satisfactory proposals to start talks on Ukraine, and that statements from the West and Ukraine are nothing but buzz-building. US Vice President JD Vance is supposedly headed to Germany this week to lay out details of the US proposal.


  • Investors remain worried that Trump's trade policies could put upward pressure on inflation in the US. This, along with the upbeat US Nonfarm Payrolls (NFP) report released on Friday, could limit the scope for the Federal Reserve to ease further and might cap the non-yielding yellow metal.


  • The closely-watched US monthly jobs data showed that the world's largest economy added 143K jobs in January compared to 170K anticipated and the previous month's upwardly revised reading of 307K. This, however, was offset by an unexpected dip in the Unemployment Rate to 4.0%.


  • Minneapolis Fed President Neel Kashkari said on Friday that he would move towards supporting further rate cuts if they see good inflation data and the labor market stays strong. Kashkari added that we are in a good place to sit here until we get more information on the Trump administration's policies.


  • Chicago Fed President Austan Goolsbee noted that inconsistent policy approaches from the US government cause a high level of economic uncertainty that makes it difficult for policymakers to draw a bead on where the economy, and inflation specifically, is likely heading. 


  • Meanwhile, Fed Board of Governors member Adriana Kugler said that US growth and economic activity remain healthy overall, but noted that progress toward the 2% inflation goal has been somewhat lopsided. Recent progress on inflation is slow and uneven, Kugler added.


  • A modest US Dollar strength might hold back traders from placing aggressive bullish bets around the commodity. Traders now look to Fed Chair Jerome Powell's semi-annual congressional testimony and the US consumer inflation figures for a fresh directional impetus. 


Gold price needs to consolidate before the next leg up amid an overbought daily RSI


fxsoriginal


From a technical perspective, the Relative Strength Index (RSI) on the daily chart is still flashing overbought conditions, warranting caution for bullish traders. This makes it prudent to wait for some near-term consolidation or a modest pullback before positioning for an extension of the Gold price’s well-established uptrend. Hence, any subsequent move up is likely to confront some barrier near the $2,886-2,887 region, or the all-time peak, ahead of the $2,900 mark.


Meanwhile, any corrective slide below the $2,855-2,854 immediate support could be seen as a buying opportunity. This, in turn, should help limit losses for the Gold price near the $2,834 region. Some follow-through selling, however, could drag the XAU/USD further toward the next relevant support near the $2,815-2,814 area en route to the $2,800 round-figure mark. 

Read more

  • Should You Buy Bitcoin Now or Buy Tesla Which Holds Bitcoin?
  • Financial Markets 2026: Volatility Catalysts in Gold, Silver, Oil, and Blue-Chip Stocks—A CFD Trader's Outlook
  • Gold climbs to $5,050 as Fed-driven USD weakness offsets positive risk tone ahead of US NFP
  • * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

    goTop
    quote
    Related Articles
    placeholder
    Financial Markets 2026: Volatility Catalysts in Gold, Silver, Oil, and Blue-Chip Stocks—A CFD Trader's OutlookThe financial world is perpetually in motion, but the landscape for 2026 seems to be shaping up to be particularly dynamic. For CFD traders navigating global markets, this heightened volatility could present a distinctive set of challenges and opportunities.
    Author  Rachel Weiss
    4 mins ago
    The financial world is perpetually in motion, but the landscape for 2026 seems to be shaping up to be particularly dynamic. For CFD traders navigating global markets, this heightened volatility could present a distinctive set of challenges and opportunities.
    placeholder
    Gold climbs to $5,050 as Fed-driven USD weakness offsets positive risk tone ahead of US NFPGold (XAU/USD) attracts some dip-buyers following the previous day's modest slide and climbs back above the $5,050 level during the Asian session on Wednesday.
    Author  FXStreet
    Yesterday 03: 52
    Gold (XAU/USD) attracts some dip-buyers following the previous day's modest slide and climbs back above the $5,050 level during the Asian session on Wednesday.
    placeholder
    Gold Price Forecast: XAU/USD falls below $5,050 as traders await US jobs data Gold price (XAU/USD) attracts some sellers near $5,035 during the early Asian session on Tuesday. The precious metal edges lower amid improved risk sentiment and some profit-taking. Traders brace for key US economic data later this week, including delayed employment and inflation reports. 
    Author  FXStreet
    Feb 10, Tue
    Gold price (XAU/USD) attracts some sellers near $5,035 during the early Asian session on Tuesday. The precious metal edges lower amid improved risk sentiment and some profit-taking. Traders brace for key US economic data later this week, including delayed employment and inflation reports. 
    placeholder
    Gold rallies further beyond $5,050 amid flight to safety, dovish Fed expectationsGold (XAU/USD) attracts follow-through buying for the second consecutive day and surges past the $5,000 psychological mark during the Asian session on Wednesday amid the global flight to safety.
    Author  FXStreet
    Feb 04, Wed
    Gold (XAU/USD) attracts follow-through buying for the second consecutive day and surges past the $5,000 psychological mark during the Asian session on Wednesday amid the global flight to safety.
    placeholder
    ASX 200 Logs Worst Session in Two Months as Gold Miners Crater Ahead of RBA DecisionAustralian shares post their worst loss in two months as gold miners slump 7.2% on hawkish US Fed outlooks and looming RBA rate hike fears.
    Author  Mitrade
    Feb 02, Mon
    Australian shares post their worst loss in two months as gold miners slump 7.2% on hawkish US Fed outlooks and looming RBA rate hike fears.
    Live Quotes
    Name / SymbolChart% Change / Price
    XAUUSD
    XAUUSD
    0.00%0.00

    Gold Related Articles

    • Is Mitrade Right for You? A Complete Guide on How to Start Trading CFDs in 5 Steps
    • Gold vs Bitcoin 2026: Which Is the Better Investment?Best Hedge Asset Comparison
    • What is Gold CFD? How to Trade Gold CFD With Mitrade Example
    • 7 Best Gold Trading Platforms in Australia (2026): Top ASIC-Regulated Brokers Compared
    • XAU/USD Gold Price Trend Analysis 2026: Will It Keep Rising?
    • Gold-Silver Ratio Explained: How to Trade Gold and Silver Profitably

    Click to view more