At 11:50 GMT, XAU/USD is trading $3026.48, up $25.35 or +0.84%.
Geopolitical Risks Drive Safe-Haven Demand
A renewed conflict in the Middle East has been a primary driver of gold’s rally. Israeli airstrikes on Gaza have intensified, with Palestinian health officials reporting over 400 casualties. The breakdown of a two-month ceasefire and Israel’s pledge to use greater force have heightened market concerns, leading investors to increase exposure to gold as a hedge against geopolitical instability.
Trump Tariffs Add Economic Uncertainty
Adding to the uncertainty, former U.S. President Donald Trump’s tariff policies have come into focus. His administration has already imposed a 25% duty on steel and aluminum, effective since February, and plans to introduce additional reciprocal and sectoral tariffs on April 2. These measures could disrupt global trade, fueling inflation risks and increasing gold’s appeal as a store of value.
Federal Reserve Policy in Focus
Traders are closely watching the Federal Reserve’s next moves, with the FOMC meeting this week drawing significant attention. The Fed has kept interest rates steady so far this year after implementing three rate cuts in 2024. Markets anticipate that easing could resume in June, a scenario that would further support gold by making non-yielding assets more attractive.
Gold Price Forecast: Potential for Further Upside
Gold has already surged over 15% year-to-date, hitting record highs 14 times. While some resistance is expected around $3,050, analysts see further upside if the current catalysts persist. GoldCore CEO David Russell suggests that a breakout above $3,050 could push prices toward $3,150–$3,200 by month-end. Given the strong safe-haven demand and dovish Fed expectations, gold’s bullish trend remains intact.
More Information in our Economic Calendar.
