Gold futures have experienced heightened volatility this week, trading within a $43 range amid escalating geopolitical tensions and shifting economic policies. Despite brief pullbacks, the precious metal remains in an uptrend on higher time frames, with analysts eyeing potential new highs as investors turn to safe-haven assets during market uncertainty.
Gold Price Action: Record Highs and Pullbacks
Earlier this week, spot gold reached a record high of $2,954 before settling around $2,928 by Friday. Gold futures followed a similar trajectory, hitting $2,973 before pulling back to last week’s Point of Control (POC) as investors reacted to global uncertainty. The metal remains on track for its eighth consecutive weekly gain, reaffirming its status as a premier safe-haven asset amid economic and geopolitical instability.
Tariffs, Central Banks, and Sentiment
The recent announcement of U.S. tariffs on imports, including automobiles, semiconductors, and pharmaceuticals, has significantly contributed to gold’s bullish trend this week. President Donald Trump’s trade policies have renewed fears of a trade war, pushing investors toward gold as a safe-haven asset.
Source: Investopedia
Meanwhile, central banks continue accumulating gold, providing strong price support amid global economic uncertainty. Goldman Sachs now anticipates that gold prices could exceed $3,100 per ounce by the end of 2025, driven by increasing demand.
For more insights on how central banks are influencing the gold market and the impact of U.S. Treasury moves, read our analysis: How Central Banks and Treasury Policies Are Driving Gold Prices.
Gold, the Dollar, and Market Correlations
While equities, particularly in Asia, have gained on optimism surrounding advances in artificial intelligence, gold’s rally has coincided with a weakening U.S. dollar, which has now booked its third consecutive weekly decline. This inverse correlation has strengthened gold’s appeal among investors looking for alternative stores of value.
Gold Outlook
Despite brief pullbacks from profit-taking, sentiment toward gold remains positive. Traders are watching upcoming economic data releases and geopolitical developments for potential upside opportunities. If the dollar’s decline persists and trade tensions escalate, gold could build momentum and test new highs.
