Select Language

Gold price hit all-time high near $3,000 as trade tensions rock markets

Breaking news

Gold price hit all-time high near $3,000 as trade tensions rock markets

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.03.14 05:57
Gold price hit all-time high near $3,000 as trade tensions rock markets

update 2025.03.14 05:57

  • Gold soars 1.70% to a fresh record of $2,985, driven by uncertainty over US trade policies.
  • Mixed signals from Trump administration officials on trade-induced recession fears fuel investor rush into Gold and Japanese Yen.
  • Markets focus shifts to the Fed policy decision next week, with rates expected unchanged but crucial hints from new economic projections.

Gold prices skyrocketed on Thursday, with the yellow metal reaching a new record high of $2,985 yet poised to extend the trend towards the $3,000 figure. Uncertainty about the United States' (US) trade policies and increasing odds the Federal Reserve (Fed) would lower interest rates underpin the precious metal. XAU/USD trades at $2,983, up 1.70%.

The yellow metal's advance is set to continue as US President Donald Trump embarks on a trade war with US allies and adversaries, as he tries to reduce the trade deficit. Fluctuations of imposing and removing duties on imports keep money flocking to Gold's safe-haven appeal.

Recently, some US officials have not seemed worried about Wall Street's reaction to Trump's administration's trade policies. US Treasury Secretary Scott Bessent said that his comments last Friday about a "detox period" did not mean a recession was necessary. In contrast, US Commerce Secretary Howard Lutnick said a recession would be "worth it" to implement the current administration's policies.

This was a green light for investors, who continued the sell-off in US equities and bought safe-haven assets like Gold and the Japanese Yen (JPY).

Meanwhile, data remains in the backseat, overshadowed by tariffs. Earlier, the US Bureau of Labor Statistics (BLS) revealed that inflation on the producer's side was mainly unchanged, with a slight decline. At the same time, the number of Americans filing for unemployment benefits last week dipped, revealed the BLS.

Ahead this week, traders eye the University of Michigan (UoM) Consumer Sentiment for March. However, their radar is focused on the Federal Reserve (Fed) monetary policy decision next week. The Fed is expected to keep rates unchanged, update its economic projections, and dictate policy paths using the infamous "dot plot."

Daily digest market movers: Gold price soars unfazed by a strong US Dollar

  • The US 10-year Treasury bond yield erases yesterday's gains, dropping four and a half basis points to 4.270%.
  • US real yields, as measured by the US 10-year Treasury Inflation-Protected Securities (TIPS) yield that correlates inversely to Gold prices, climb one basis point to 1.99%.
  • The US Dollar Index (DXY), which tracks the Greenback's value against six currencies, recovers 0.27% to 103.85.
  • The US Producer Price Index (PPI) for February came in softer than expected, rising 3.2% YoY, below the 3.3% forecast and down from 3.7% in January.
  • Core PPI, which excludes volatile components, increased 3.4% YoY, falling short of the 3.5% estimate and easing from 3.6% in the prior month.
  • Despite recent cooler-than-expected inflation data, economists caution that tariffs on US imports could lead to a renewed inflationary uptick in the coming months.
  • Meanwhile, Initial Jobless Claims for the week ending March 8 edged down to 220K, beating forecasts of 225K and improving from the 222K reported previously.
  • On Wednesday, 25% US tariffs on steel and aluminum took effect at midnight as US President Donald Trump is battling to reduce the trade deficit by applying duties on imports.
  • Money market futures traders had been priced in 74 basis points of easing by the Federal Reserve (Fed) toward the end of the year.
  • The Atlanta Fed GDPNow model predicts the first quarter of 2025 at -2.4 %, which would be the first negative print since the COVID-19 pandemic.

XAU/USD technical outlook: Gold price surges toward $3,000

Bullion prices are trading at all-time highs of $2,985 after clearing the previous year-to-date (YTD) high on February 20 at $2,954. Momentum remains exceptionally bullish, with the Relative Strength Index (RSI) slope aiming higher, but with room before turning overbought. With that said, Gold's next resistance would be $3,000. A breach of the latter would expose $3,050 followed by the $3,100 mark.

Conversely, if XAU/USD drops below $2,950, the next support would be $2,900 ahead of $2,850. The following support will be a February 28 low of $2,832.

Gold FAQs

Gold has played a key role in human's history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn't rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country's solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

 


Date

Created

 : 2025.03.14

Update

Last updated

 : 2025.03.14

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Gold price pulls back after historic surge past $3,000 on Trump trade woes

Gold prices retreat after hitting a record high, surpassing $3,000, as traders remain uncertain about US President Donald Trump's trade policies.
New
update2025.03.15 06:10

Mark Carney becomes new Canadian Prime Minister, vows to meet Trump at the table

Newly-minted Canadian Prime Minister Mark Carney took over the reigns of Canada from now-former Prime Minister Justin Trudeau on Friday morning, and the fresh Canadian leader wasted no time in declaring his intent to meet US President Donald Trump head-on as the Trump administration spools up a messy, global trade war with nearly all of the US's closest trading partners simultaneously.
New
update2025.03.15 04:44

Dow Jones Industrial Average pares losses on Friday, but remains steeply bearish

The Dow Jones Industrial Average (DJIA) fought back at the brink on Friday, clawing back roughly 500 points following a string of bad losses that saw the Dow Jones crumble 3,373 points, or -7.66%, peak-to-trough over a two-week period.
New
update2025.03.15 04:20

Banxico: Uncertainty clouds Mexico's economic horizon - El Financiero

Banco de Mexico (Banxico) Director of Economic Research Alejandrina Salcedo Cisneros said that uncertainty is having a widespread impact on the country's businesses, so the outlook points to a moderate expansion of regional economies.
New
update2025.03.15 03:54

Mexican Peso defies gloomy data, rockets higher on USD weakness

The Mexican Peso (MXN) rallied against the US Dollar (USD) on Friday, ignoring softer-than-expected economic data revealed during the week that suggests the economy might slow down.
New
update2025.03.15 03:29

GBP/USD slides as UK economy falters ahead of central bank bonanza

The Pound Sterling registers back-to-back bearish days, dropping some 0.14% on Friday against the Greenback after economic data from the UK revealed that the Gross Domestic Product (GDP) contracted.
New
update2025.03.15 00:27

US UoM Consumer Sentiment Index is seen declining to 57.9 in March

US Consumer Sentiment took a dip in early March, according to the preliminary reading of the University of Michigan's Consumer Sentiment Index.
New
update2025.03.14 23:04

EUR/USD briefly back at 1.09 after Trump's tariffs face headwind

The EUR/USD pair edges higher and recovers to 1.0900 at the time of writing on Friday, erasing its sluggish performance from earlier this week.
New
update2025.03.14 22:54

GBP consolidates in mid-1.29s - Scotiabank

Pound Sterling (GBP) is little changed on the session after UK GDP data fell 0.1% in the January month, a little weaker than forecast, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
update2025.03.14 22:51

EUR/USD: Signs that German parties agree on debt package - Scotiabank

The EUR is tracking higher on the session, with late week dips to the low 1.08 zone prompting some renewed buying interest from bargain hunters.
New
update2025.03.14 22:47

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel