The yellow metal continues its unstoppable climb, propelled by mounting geopolitical tension and a weakening US Dollar. With gold breaking past $3,100 and hitting fresh all-time highs, the current market dynamics signal a powerful shift in investor sentiment.
Gold prices are gaining ground for the third consecutive session, fuelled by intensifying global trade tensions and increased safe-haven demand. Investors are reacting to the anticipated announcement of reciprocal tariffs by US President Donald Trump, expected on Wednesday, which is stoking fears of broader economic disruption. These concerns are amplifying the appeal of gold, historically viewed as a reliable store of value during periods of instability.
Further buoying gold’s ascent is sustained weakness in the US Dollar. With markets pricing in a renewed cycle of interest rate cuts by the Federal Reserve, investor appetite for the non-yielding asset remains robust. Despite stronger inflation data released last Friday, the growing expectation of a policy pivot in response to slowing economic momentum has taken precedence, exerting continued pressure on the Dollar.
While bullish momentum in gold remains strong, technical indicators on the daily chart suggest overbought conditions, prompting a degree of caution among traders eyeing further gains. Nonetheless, the broader environment—marked by uncertainty and dovish monetary expectations—continues to support the metal’s upward trajectory.
Gold remains a focal point for investors seeking protection from rising risk. Its latest move underscores the market’s sensitivity to macroeconomic signals and the enduring allure of precious metals in volatile times.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
