Gold price surges to a new record high as global investors seek safety amid tariff-induced market uncertainty

Gold prices (XAU/USD) continue their upward momentum for the second straight session, reaching a fresh record high of around $3,077–3,078 during Friday’s Asian trading. Investor sentiment remains fragile following US President Donald Trump’s newly announced 25% auto tariffs, set to take effect on April 3, which have heightened concerns about a broader trade war. Uncertainty surrounding Trump's upcoming reciprocal tariffs and their potential economic impact further drives safe-haven demand for gold. Meanwhile, market fears that escalating trade tensions could slow US growth and force the Federal Reserve to resume rate cuts have kept the US Dollar (USD) under pressure, adding to gold’s strength. However, XAU/USD may see a brief pause as traders await the US Personal Consumption Expenditure (PCE) Price Index for further guidance on the Fed’s rate policy.

Daily Market Movers: Gold Price Sustains Gains Amid Trade War Concerns

• Trump’s 25% tariff on imported cars and light trucks, alongside existing steel and aluminum duties, fuels risk aversion and drives gold to a new record high.
• Concerns over a potential US economic slowdown from tariffs have increased expectations that the Fed may cut interest rates at its June meeting.
• Despite strong US economic data, including a better-than-expected 2.4% Q4 GDP growth and lower-than-anticipated jobless claims, USD bulls remain subdued.
• Fed officials remain cautious, with Richmond Fed President Tom Barkin supporting current monetary policy amid uncertainty, while Boston Fed President Susan Collins warns that aggressive trade policies may fuel inflation.
• The focus now shifts to the US PCE Price Index, the Fed’s preferred inflation measure, which could influence rate-cut expectations and drive gold’s next move.

Technical Outlook: Gold Price Eyes Consolidation Before Next Breakout

Gold’s bullish momentum remains intact, supported by resilience around the $3,000 psychological level and a strong breakout to new highs. However, the daily Relative Strength Index (RSI) signals overbought conditions, suggesting a potential short-term consolidation or pullback before the next leg higher. Immediate support lies at the $3,050–3,048 zone, followed by $3,036–3,035.

A break below these levels could trigger further downside toward $3,020–3,019 and the key $3,000 mark. A decisive drop below $3,000 could shift short-term sentiment, while sustained strength above current levels keeps the broader uptrend in play.