Market Updates

Gold Rockets to Historic $3,219 Peak as Dollar Sinks and Trade Tensions Explode

Gold prices soared to a new record of $3,219 early Friday in Asian markets, fueled by a plunging US Dollar and the deepening economic conflict between the United States and China. Investor demand for safe-haven assets surged as fears of a global recession and political instability in the US escalated.


📈 XAU/USD Market Snapshot – Gold Technical Outlook

Current Price: $3,212.13
Trend Bias: Strongly bullish
RSI Status: Hovering around 70, indicating buyers are still in control but nearing overbought territory.

  • Immediate Resistance: $3,250 (psychological level)
  • Next Upside Target: $3,300
  • Key Support Levels:
    • $3,200 (first demand zone)
    • $3,061 (21-day SMA – potential bounce point)
    • $3,000 (critical floor for bullish structure)

While the momentum remains bullish, analysts caution that any pullback below $3,200 may trigger a short-term consolidation phase before the next leg higher.


🌐 What’s Driving Gold’s Massive Rally?

📉 Dollar Weakness Amplifies Gold’s Shine

The US Dollar has been on the back foot, pressured by weaker-than-expected inflation data and political uncertainty. March’s CPI rose just 0.1%, pulling the year-over-year inflation rate down to 2.4% from 2.8%, intensifying expectations of imminent Fed rate cuts.

🇺🇸⚖️ Fed Independence Under Fire

In a dramatic twist, the US Supreme Court temporarily granted President Trump broader authority over independent institutions, including the Federal Reserve. This raises alarms over potential interference with monetary policy and speculation over Fed Chair Jerome Powell’s job security.

💥 US-China Tariff Clash Escalates

Adding fuel to the fire, President Trump raised tariffs on Chinese imports to a stunning 145%, drawing a swift and aggressive response from Beijing, which countered with 84% tariffs on US goods. China is also strengthening economic ties with the EU and other Asian allies, signaling a long battle ahead.


📅 What’s Next for Gold?

The US Producer Price Index (PPI) and University of Michigan inflation expectations data are due later today, but analysts expect tariff-related headlines to dominate sentiment.

Profit-taking on Friday could briefly cool gold’s rally, especially as traders reposition ahead of the weekend. However, any confirmation of aggressive Fed rate cuts or further escalation in the US-China spat could reignite another wave of gold buying.


✅ Takeaway

Gold is firmly in the spotlight as the global financial landscape turns volatile. With geopolitical risk, inflation jitters, and monetary policy uncertainty all converging, the path of least resistance for gold still appears upward—at least for now.

📌 Stay tuned for live gold updates, PPI data, and reactions from Beijing on the next phase of the US-China tariff standoff with Daily Forex Pakistan.

Yasher Rizwan

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