The GBP/USD macro cross-processing currency pair has taken sign of a bullish trend, drawing buyers for the sixth day in a row. On Tuesday during the Asian session, it finally pushed through that significant 1.3200 level. That increase shot it to a new record high not seen since October 2024. Three main factors are fueling this impressive growth. Continuing uncertainty over US tariffs and the current overall negative outlook for the US Dollar are major factors.
Currently, the rise of GBP/USD pair beyond 1.3200 indicates the increasing confidence of the investors in the British Pound. The recent surge comes on the heels of a steady uptick that has marked its direction for most of the last few trading days. Analysts have been quick to stress the underlying strength of the GBP. This increase is a result of both domestic economic conditions as well as favorable overall market conditions.
This new bullish tide for the GBP/USD pair comes as safe-haven assets, especially Gold continue to surge in value. That uncertainty over US tariffs continues to make these assets appealing. With investors looking for safe havens from market volatility, that makes them even more attractive. On the other hand, the price of gold has rebounded and picked up bullish momentum. This increase is raising gold’s position as a safe haven, as worries increase over US economic policy.
The impact of US tariff uncertainty should be hard to overstate. With trade talks continuing to be unclear, uncertainty has investors on edge and causing them to rush into safe-haven assets. The global demand for gold is exploding. That increased interest has, as you can imagine, combined with the highly active speculative fears, raised prices to an extreme. The XAU/USD currency pair—Gold vs US-Dollar—has received an enormous shot in the arm. This increase is in part because of the current negative sentiment surrounding the Dollar.
Market analysts point out that bearish sentiment towards the US Dollar is increasing. This move increases the attractiveness of Gold and other safe-haven assets. With the threat of a recession looming larger than ever, investors have been flocking to safer havens. This change in priorities has propelled Gold prices to new highs. Against this encouraging background, the short-term trajectory for the spot prices looks to be at least up.
Additionally, expectations for dramatic Federal Reserve rate cuts in 2025 are weighing on the US Dollar. This uncertainty continues to reinforce the bearish stance towards the Dollar and therefore favors precious metals such as Gold. The market mood is beginning to roll over onto a weaker Dollar. Therefore, the XAU/USD pair has benefited from this move, boasting XAU/USD advance significant siege in the past few days.