Gold prices surged past the $3,100 mark for the first time in history as escalating concerns over a global trade war and U.S. stagflation fueled demand for the safe-haven asset.
A Wall Street Journal report revealed that former U.S. President Donald Trump may announce broader and higher reciprocal tariffs on April 2, dubbed ‘Liberation Day.’ The report suggests that Trump’s advisers are considering global tariffs of up to 20% on nearly all U.S. trading partners, sparking a fresh wave of risk aversion in financial markets.
Market Fallout and Gold’s Safe-Haven Appeal
Investor anxiety has triggered a “sell everything” sentiment, with markets fearing an escalating tit-for-tat tariff battle that could worsen inflationary pressures and hinder global economic growth. This uncertainty has driven investors toward gold, reinforcing its status as the ultimate safe-haven asset.
Meanwhile, the U.S. dollar and Treasury bond yields are under pressure, as mounting stagflation fears further bolster gold’s rally.
Outlook and Technical Risks
Despite the strong momentum, questions remain about the sustainability of gold’s uptrend. With Trump’s tariff announcement looming on April 2, traders may opt for profit-taking in the coming sessions. Additionally, technical indicators suggest a potential correction, as gold’s daily Relative Strength Index (RSI) has entered the overbought territory, nearing 76.
