New Tariffs – New ATHs for Gold

#XAUUSD has reached $2900/oz, as we write. Gold prices leaped up during the Asian session on Monday, regaining the ground lost after the volatility of the NFP. Once again, investors sought safety in the precious metal amid escalating trade tensions. 

The latest rally followed President Donald Trump’s announcement over the weekend that his administration would impose new 25% tariffs on all steel and aluminum imports, adding to the existing duties on metals. The move represents another significant escalation in Trump’s trade policy, heightening concerns over a potential global trade war. Trump also indicated plans to introduce reciprocal tariffs on multiple countries as soon as Tuesday, February 11.

We expect gold to remain bullish as uncertainty persists. On every timeframe, the precious metal continues to hover from extremely overbought to less overbought levels, but the upside momentum shows no signs of slowing. Moreover, a significant correction in gold prices is unsupported by fundamental factors. Unless the USD experiences a sharp appreciation due to more hawkish Fed comments on monetary policy, minor pullbacks can be used to add to your position.

Speaking of, Fed officials on Friday acknowledged the strength of the U.S. labor market but also cited uncertainty regarding Trump’s trade policies and their potential impact on inflation and economic growth, suggesting that rate cuts remain off the table for now.

Beyond trade tensions, geopolitical developments also contributed to market uncertainty. Trump stated that he believes the U.S. is making progress in negotiations to end the war between Russia and Ukraine but declined to provide details on any direct communication with Russian President Vladimir Putin ????????

So, for now, no end to the #XAUUSD rally in sight. 

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