Gold Prices Hit All-Time High Despite Strong US Dollar Amid Tariff Concerns

Gold prices hits all-time high despite strong US dollar.  It hit a high of $2942 yesterday and currently trading around $2903.

Tariffs and Gold price

Due to the trade war under President Trump, the prices of gold have hit record highs as they touched $2,942.70 per ounce on February 10, 2025. Investors are worried because of the possibility of a trade war and global economic slowdown. The demand for safer havens like gold has thus increased. Fears of inflation, which were triggered by the tariffs, also increased the appeal of gold as a hedge against rising prices. Central banks are buying more gold, and purchases have exceeded 1,000 tonnes in 2024. Analysts at JPMorgan Chase and Goldman Sachs predict that gold could reach between $2,950 and $3,000 in the next couple of years. A potential gold ETF re-stocking could even drive prices up to $3,100. Gold is seen as a safe bet during uncertain times.

Rate Pause Sentiments Climb

According to the CME Fed Watch tool, the chances of a rate pause in the Mar 19th, 2025 meeting have increased to 93.5% up from 84% a week ago.

Technical Analysis: Key Levels and Trading Strategy

Gold prices are holding above short-term moving averages 34 EMA and 55 EMA and long-term moving averages (200 EMA) in the 4-hour chart. Immediate support is at $2875 and a break below this level will drag the yellow metal to $2850/$2830/$2800/$2770/$2740. The near-term resistance is at $2920, with potential price targets at $2945/$2957/$3000.

It is good to buy on dips around $2850 with a stop-loss at $2830 for a target price of $2955.