Gold prices have risen by 1.9% this week to
$2,753 per troy ounce, approaching the all-time high of $2,789. A further
upward move could easily push prices beyond this peak in the coming days. The
current rally began on Monday, and even if momentum slows, gold could still
reach new record levels through inertia, possibly at the start of next week.
A breakout above the record high would likely
fuel further gains, with prices potentially targeting $3,000 per ounce.
Although fundamental drivers are becoming less transparent, technical indicators
strongly support continued upward momentum. The diamond pattern on the charts
points to a trajectory towards $3,100–$3,200 per ounce by mid-April. While
large investors appear cautious, they are still buying gold, with the SPDR Gold
Trust (GLD) reporting net inflows of $211.0 million last week, reinforcing the
bullish outlook suggested by the diamond pattern.
From a technical perspective, the targets are
well-defined, but fundamental factors present a mixed picture. On one hand,
easing concerns about imminent tariff hikes promised by Donald Trump and
positive discussions with China's President Xi Jinping suggest a reduced
likelihood of a trade war, which would typically weigh on gold prices. On the
other hand, the retreat of inflationary pressures has created favourable market
conditions, supporting gold's ascent. U.S. 10-year Treasury yields have fallen
from 4.80% to 4.59%, while the probability of a quarter-point interest rate cut
by the Federal Reserve in March has increased to 30.0% from 19.8%. These factors
suggest that gold is likely to continue rising under almost any scenario.
The escalating threat of tariffs is another
factor pushing gold higher, contributing a 0.50% gain last week and 1.9% this
week. On Tuesday, a day after his inauguration, Trump reaffirmed his plans to
impose tariffs ranging from 10% to 25% on imports from Canada, Mexico, China,
and the European Union, starting 1 February. If implemented, these tariffs
could prompt China to increase its gold reserves, further accelerating the metal's
upward trajectory. Conversely, if the tariffs are delayed or watered down, gold
is still expected to climb, albeit at a slower pace, driven by expectations of
looser monetary policy from the Fed. This creates a precarious scenario for
traders, akin to navigating a "knife-edge" market.
Looking ahead, Trump is set to speak at the
World Economic Forum on Thursday, where bold statements are anticipated.
Additionally, the Bank of Japan is widely expected to raise interest rates by
25 basis points to 0.50% on Friday. The last time the BoJ increased rates, by
10 basis points, it caused significant market turmoil over two days and pushed
the EURUSD up by 2.0%. A similar reaction this time could be enough to propel
gold to new all-time highs.
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.