Gold Soars Above $3,350 as XAU/USD Rallies on Trade Tensions

Gold (XAU/USD) has captured the attention of traders once again, surging above the $3,350 mark as global trade tensions intensify. The latest rally comes in response to new tariffs imposed by U.S. President Donald Trump, which have reignited uncertainty in financial markets and driven investors toward the traditional safe-haven asset. As volatility returns, golds resilience is on full display, with both technical and fundamental factors supporting its ascent.

XAU/USD Price Action and Market Drivers

The current rally in gold is underpinned by a combination of geopolitical risk and shifting market sentiment. The imposition of fresh tariffs has rattled global markets, prompting a flight to safety and reinforcing gold‘s status as a hedge against uncertainty. Additionally, the U.S. dollar’s recent weakness has made gold more attractive to international buyers, further fueling its upward momentum.

Key drivers behind the latest move include:

• Escalating trade tensions between major economies
• Increased safe-haven demand amid geopolitical uncertainty
• Ongoing central bank purchases, with projections of around 900 tonnes for 2025
• A softer U.S. dollar, boosting golds appeal for non-dollar investors

Technical Outlook: Levels to Watch

Golds technical landscape remains bullish, with the price consolidating above key support zones and eyeing further gains. The uptrend is characterized by higher lows and robust demand at critical levels.

Important technical levels include:

• Support:
• $3,330.8 (50-day moving average)
• $3,300 (trendline support)
• $3,272–$3,240 (Fibonacci retracement zone)
• Resistance:
• $3,360 (immediate resistance)
• $3,400–$3,440 (major resistance zone)
• $3,509.9 (all-time high)
• Momentum Indicators:
• The Relative Strength Index (RSI) remains neutral, suggesting a period of consolidation after recent gains.
• Elliott Wave analysis indicates gold is in wave (3) of a five-wave advance, targeting $3,400–$3,500 before any significant correction.

For active traders, the current environment presents several potential opportunities:

• Trend Continuation Long: Enter above $3,360 with a stop below $3,300, targeting a move toward $3,500 or higher.
• Pullback Buy: Look for entries near $3,310–$3,320, with stops below $3,280, aiming for a retest of the all-time high.

Short-term corrections toward $3,315 are possible, but the broader trend remains upward unless prices fall below $3,135, which would signal a shift toward deeper declines.

Whats Next for Gold?

Golds resurgence is anchored in its role as a safe-haven asset during times of economic and political upheaval. The combination of robust central bank demand, a weakening dollar, and persistent geopolitical risks continues to support the bullish narrative for XAU/USD. As the market navigates ongoing volatility, traders should monitor key technical levels and remain alert to further developments in trade policy and global risk sentiment.

Conclusion

Gold‘s rally above $3,350 highlights its enduring appeal amid renewed trade tensions and global uncertainty. With technicals pointing to further upside and fundamental drivers firmly in place, the precious metal remains in focus for traders seeking both opportunity and protection in volatile markets. As the story unfolds, vigilance and adaptability will be essential for those looking to capitalize on gold’s next move.