Gold Mania: Can the Yellow Metal’s Relentless Rise Break the $3,500 Barrier?

Gold prices are blazing new tracks, jumping to just shy of $3,350 per ounce during early Monday Asian trade as investors globally seek refuge from rising global trade nervousness and a bearish US dollar. Financial markets have been sent into shock by the current tariff war, led by US President Donald Trump's sharp increases on Chinese imports and Beijing's countermeasures, as they fuel the fears of an imminent recession and trigger a huge gold flight.

 

Key Points:

In spite of the Federal Reserve's recent dovishness, which may restrict further gains, inflation fears and anticipation of future US rate cuts still support the rally in gold.

Potential volatility is warned by analysts, who say profit-taking and technical resistance at $3,350 are looming, but long-term prospects are bullish while global uncertainty persists.

 

With trade tensions not letting up and the dollar weakening, gold's safe-haven appeal is set to shine all the brighter in the coming months.

 

Source: FXStreet, Reuters, Financial Express