Gold approaches all time high amid escalating US-China tariff tensions

Gold price climbed to a new weekly high near the $3132–$3133 zone heading into the European session. The yellow metal remains supported despite a brief pause in its rally as escalating US-China trade tensions continue to drive safe-haven demand. According to the Wall Street Journal, Beijing is deepening ties with the EU, indirectly targeting US companies that signals a shift in global trade alliances.

This development follows President Trump's announcement of a 90-day pause on 10% tariffs for all countries except China while imposing a sharp hike of 125% on Chinese imports. In response, China raised tariffs on US goods to 84%, up from 34%, intensifying the ongoing trade conflict.

Investor sentiment remains cautious with Gold benefitting from concerns that Trump’s trade policy could stoke inflation and slow the economy. These fears have increased expectations for multiple Fed rate cuts, keeping the US Dollar under pressure and Gold in demand. A softer inflation print may reinforce expectations for rate cuts, lifting Gold further. However, a hotter reading could trigger a temporary pullback as markets reassess the Fed’s next move.

XAU/USD TECHNICAL ANALYSIS 

Technical Structure: Gold exhibits a strong bullish structure across multiple timeframes. On the daily chart, a bullish engulfing candle confirms renewed upward momentum with prices holding firm above the 20-day Simple Moving Average (SMA). The 4-hour chart shows a double bottom breakout further reinforcing the bullish momentum. Meanwhile, the 1-hour chart showcases a bullish flag pattern, suggesting possible continuation to the upside.

Intraday Trend & Strategy: The intraday trend remains bullish. Traders may look to buy on breakouts above key levels or buy near support zones, benefitting from short-term pullbacks. A decisive move above $3150 would likely trigger fresh momentum and attract additional buyers.

Weekly Trend: Uptrend

Major Resistance: 3136, 3155, 3167
Major Support: 3100, 3078, 3063