Gold price climbs beyond $3,100, sets fresh record high amid trade woes

Gold price attracts safe-haven flows for the third straight day amid rising trade tensions. Fed rate cut bets weigh on the USD and also lend support to the non-yielding yellow metal. Overbought conditions on the daily chart now warrant some caution for bullish traders. 

A technical sell in the Gold price also cannot be ruled out as buyers have already achieved the ascending triangle target, measured at $3,080, last Friday. Additionally, the 14-day Relative Strength Index (RSI) is trending in the highly overbought region above 75, warranting caution for buyers.  

If a correction unfolds, the immediate support is seen at the intraday low of $3,077, below which the $3,050 psychological barrier will be tested. If the selling momentum intensifies, the March 26 low of $3,012 could come to buyers’ rescue. Conversely, if buyers retain control, the next target on the topside is seen at the $3,150 threshold. Fresh buying opportunities would emerge above that level, opening doors for a fresh uptrend toward the $3,200 round figure.

Fundamental Overview

The buying interest in the Gold price remains unabated, with markets scurrying for safety in the traditional store of value amid speculations surrounding US President Donald Trump’s tariffs plans on ‘Liberation Day’, April 2.

The latest Wall Street Journal (WSJ) report highlighted that US President Donald Trump could aim for higher and broader reciprocal tariffs on Wednesday, driving riskier assets into a tailspin while bolstering the ultimate safe-haven Gold price.

Markets are dreading the looming risks of a full-fledged global tariff war, which is likely to unfold after Trump’s reciprocal tariffs. This could intensify inflationary pressures, leading to stagflation.

Mounting concerns over a potential stagflation in the United States (US) are weighing heavily on the US Dollar (USD) and the US Treasury bond yields, allowing the non-yielding Gold price to clinch fresh record highs.

However, the further upside in the Gold price could be capped if traders opt to cash in on the record rally ahead of Wednesday’s tariffs announcements by Trump.

The US data-docket remains light at the start of the week, leaving the Gold price at the mercy of the broad market sentiment and Trump’s tariff expectations.