Breaking: Gold pops to new all-time high above $2,900 on tariff fears

• Gold pops over 1% on Monday after more tariff headlines over the weekend. 
• Traders pile into the precious metal as the single safe haven to withstand tit-for-tat tariff war. 
• At this pace, Gold could be on its way to hit $3,000 quite quickly. 

Gold's price (XAU/USD) pops higher and prints a fresh all-time high above $2,900 at the time of writing on Monday. The move comes after United States (US) President Donald Trump said he would announce "reciprocal tariffs" on many countries on Tuesday or Wednesday, adding to increasing uncertainty in global financial markets. On Sunday, US President Trump said a 25% levy would apply for all steel and aluminum imports into the US, but did not say when they would be applied.  

Meanwhile, traders will focus on Federal Reserve (Fed) Chair Jerome Powell's semi-annual testimony to lawmakers on Tuesday and Wednesday for fresh clues about the path forward for US monetary policy. Powell is likely to highlight the resilient economy as a key reason central bankers are in no rush to cut borrowing costs further. This is a tail risk for Gold as, in theory, it would be a bearish element for bullion.

Daily digest market movers: Too expensive

• Several sources are reporting concerns in China about the current price of Gold. Several Chinese market participants are apparently halting their Gold buying programs for now because prices in the precious metal are too elevated, Bloomberg reports.
• President Trump also flagged plans for reciprocal tariffs, which would increase US import duties to match those imposed by the country's other trading partners.
• The CME FedWatch tool shows a 93.5% chance that interest rates will remain unchanged in March, compared to a slim 6.5% chance of a 25 basis point (bos) rate cut. 

Technical Analysis: Gold stretching higher on Monday

It's a new week, and the Gold price is already rallying over 1% and printing a fresh all-time high in early trading. Risks with the headline from President Trump are that they will start to be priced in by the time the US session gets underway. The path is quite straightforward, with $3,000 nearing quickly, though quick profit-taking could be just around the corner. 

The Pivot Point level on Monday is the first nearby support at $2,866, followed by the S1 support at $2,846. From there, S2 support should come in at $2,832. In case of a correction, the bigger $2,790 level (October 31, 2024, high) should be able to catch any falling knives.

On the upside, the R1 resistance comes in at $2,881, which was already broken earlier this Monday. In case the rally follows through in the European and US sessions, the $2,900 level, which is the confluence of a big figure and the R2 resistance, will be tested for a break to the upside.

XAU/USD: Daily Chart