Gold Extends Record Run as Trade Policy Uncertainty Fuels Demand
31 January 2025
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Gold surged to a new all-time high this week, climbing past its November peak by roughly $10, as growing unease over U.S. trade policy sparks renewed safe-haven flows.
Tariff Fears Drive Demand
The rally comes amid speculation that the Trump administration could impose fresh tariffs on major partners Mexico and Canada, with an announcement potentially arriving as soon as February 1. At the same time, uncertainty lingers over China’s trade status—reports suggest Washington remains “not close at all to making a decision,” though Beijing has signaled some concessions on issues such as TikTok.
Technical Picture
On the charts, XAU/USD retains strong bullish momentum. The daily setup suggests a test of the $2,800 level may be imminent. While oscillators are approaching overbought conditions, they remain short of signaling exhaustion, leaving room for additional upside in the near term.
Broader Market Context
Analysts note that political unpredictability has reinforced gold’s role as the go-to hedge against volatility. With equity markets vulnerable to tariff headlines and the dollar facing mixed drivers, gold’s breakout may continue to attract capital flows from both institutional and retail investors.
