Gold surged to the key psychological level of $3,000 last Friday as investors flocked to the safe-haven asset amid rising global risks. Concerns over escalating trade tensions, particularly Trump’s tariffs on the Eurozone, and geopolitical uncertainties fueled the rally.
Trump’s Trade Policy: More Pain Ahead?
Markets remain on edge as Trump’s aggressive tariff measures continue to spark global trade tensions. Mexico and Canada, the first targets of his trade agenda, have been negotiating with the White House for over a month in an attempt to ease the steep tariffs.
Trump’s 100% tariff on EU wine and alcohol has already triggered retaliation from the EU, which imposed a 50% tariff on U.S. bourbon. However, Trump has threatened even harsher measures, warning that if the EU doesn’t remove its tariffs, the U.S. will slap a 200% tariff on all European wines, champagnes, and alcohol products.
With additional tariffs on steel and aluminum already taking effect this week, market fears are growing that the worst is yet to come. The next major threat looms in April, when the White House is set to roll out its reciprocal tariff plan, potentially triggering a full-scale trade war.
Ukraine War: Ceasefire Talks Ongoing
President Donald Trump is set to hold a phone conversation with Russian President Vladimir Putin this week to negotiate a potential 30-day ceasefire in Ukraine. U.S. Special Envoy Steve Witkoff expressed optimism about reaching an agreement soon, though significant hurdles remain.
Russia has outlined strict conditions for any ceasefire, demanding “ironclad” guarantees that Ukraine will remain neutral and be excluded from NATO membership. Russian Deputy Foreign Minister Alexander Grushko reiterated that “Ukraine’s NATO membership is unacceptable to Moscow”.
Meanwhile, under Trump’s urging, European nations—particularly the Baltic states—are accelerating their defense measures in response to potential Russian aggression. The geopolitical situation remains fluid, with ceasefire talks unfolding alongside increasing military preparedness in Europe.
Gold Hits $3,000 as Uncertainty Drives Safe-Haven Demand
Gold surged to a historic high of $3,000 on Friday, fueled by market uncertainty and rising risk-aversion. With ongoing concerns over trade wars and geopolitical tensions, the bullish outlook for gold remains intact.
(XAUUSD, 4-H Chart Analysis; Source: Trading View)
However, as gold reaches this key psychological level, we could see some corrective pullbacks in the short term, especially with the upcoming FOMC meeting this week, which may influence market sentiment and gold’s trajectory.
From a technical perspective, if a pullback occurs, major support levels to watch are $2,980 and $2,955, which could provide strong footing for the next potential rebound.
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