The price of gold surged to a fresh all-time high near the $3,400 mark on Monday, building on strong momentum after a modest pullback on Friday. Persistent trade war fears and a weakening U.S. Dollar continued to drive investor demand for safe-haven assets, boosting the precious metal’s appeal at the start of the week.
Concerns over a potential recession, fueled by escalating U.S.-China trade tensions, weighed heavily on global equity markets, further supporting gold prices. Adding to the bullish sentiment, the U.S. Dollar fell to a two-year low, as investors remained skeptical of the economic outlook despite Federal Reserve Chair Jerome Powell’s recent hawkish comments.
Market sentiment soured after President Donald Trump announced tariffs of up to 145% on certain Chinese imports, with reports suggesting some duties could reach as high as 245%. China responded with tariffs of 125% on U.S. goods, heightening fears of a full-scale trade war. Analysts warn that such aggressive policies risk undermining global trade and triggering a U.S. recession, deepening the downward pressure on the greenback.
Despite overstretched technical indicators, with the daily Relative Strength Index (RSI) firmly above 70, gold bulls appeared unfazed, indicating that the path of least resistance remains to the upside. Analysts, however, caution that some near-term consolidation may be needed before the next leg higher.
In thin trading conditions due to the Easter Monday holiday, gold’s rally persisted even as geopolitical developments offered potential relief. The U.S. and Iran agreed to resume expert-level nuclear discussions, and Russian President Vladimir Putin announced a one-day ceasefire in Ukraine. Nevertheless, these moves did little to restore investor confidence or dampen safe-haven flows.
Looking ahead, investors will monitor a speech by Chicago Fed President Austan Goolsbee later Monday for fresh policy clues. Focus will then shift to Wednesday’s flash PMI releases, which are expected to provide a broader snapshot of global economic health.
From a technical perspective, immediate support for gold lies near the $3,350 level, followed by the $3,329–$3,328 zone. A decisive break below these levels could open the door for a deeper pullback toward the psychological $3,300 mark and Friday’s swing low around $3,284.
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