Gold moves to record highs past $3,340

Gold now gathers extra steam and advances beyond the $3,340 mark per troy ounce on Wednesday, hitting all-time highs amid ongoing worries over escalating US-China trade tensions, a weaker US Dollar and lack of news from Powell's speech.

XAU/USD Technical Overview

The XAU/USD pair trades near its record high, and the daily chart supports another leg north. Technical indicators aim firmly north within overbought readings, while the pair remains far above all bullish moving averages. The 20 Simple Moving Average (SMA) currently hovers around $3,100, turning into a strong mid-term dynamic support should Gold finally correct lower.

The 4-hour chart shows that the Momentum indicator heads north well above its midline, while the Relative Strength Index (RSI) indicator consolidates at around 80, reflecting extreme overbought conditions yet far from suggesting XAU/USD may change course anytime soon. At the same time, the 20 SMA keeps advancing firmly higher, far above the longer ones, in line with the dominant bullish trend.

Support levels: 3,317.20 3,305.65 3,292.80

Resistance levels: 3,335.00 3,350.00 3,375.00

Fundamental Overview

As the trade war resumed, so did Gold’s rally. The XAU/USD pair traded as high as $3,333.10 in the American afternoon on Wednesday, a fresh record high. Tensions between the United States (US) and China escalated after US President Donald Trump said China could face levies up to 245%, as a result of Beijing's retaliatory actions.

Additionally, Trump launched an investigation into the "national security risks posed by US reliance on imported processed critical minerals and their derivative products."

As a result, Fitch Ratings published a report stating that it has sharply lowered its forecasts for world growth in response to the severe escalation in the global trade war. In a special update to its quarterly Global Economic Outlook, Fitch has cut world growth in 2025 by 0.4pp and China and US growth by 0.5pp from the March edition.