Gold has made a new all-time high a commonplace reality, exciting the radar screens of investors around the globe. Amidst market fluctuations, the price of gold is flirting with the $3,057 mark, raising questions about a potential surge to $3,100. Former President Donald Trump made significant trade tariffs. These diversification changes have been remarkably impactful in driving downward market volatility. Indeed, these tariffs are unprecedented since World War II. Their tariffs have increased the trade-weighted average tariff rate on US imports by approximately 5.5 to 6.0%.
Specifically, the introduction of a 25% import tariff on non-US made vehicles has thrown the market into turmoil. The shock waves to these tariff changes that coursed through financial markets led investors to flee to safe-haven assets such as gold. As always, the fast-moving global Forex market demands experienced, trusted partners to help smooth the waters during these stormy seas.
In the past week Gold’s price has skyrocketed above the textbook Cup-with-Handle candle stick reversal formation. It’s now close to its $20 formation height ceiling price target of $3,056. An incoming breakout above $3,058 can fuel bulls run momentum toward trend-based Fibonacci extension targets ranging from $3,073-$3,081 and potentially up to $3,103. This indicates that any deep retracement towards the support zone of $3,041 and $3,034 is likely to attract buyers. The bulls are clearly intent on defending the $3,021 support area at all costs.
At the same time, the dollar is persistently pushed down and under pressure below the 104.50 local pivot, adding to gold’s bullish run. The rare metal is on the offensive, headed up and looking to take out its record high of $3,057.