Gold Price Surges as Tariff Threats and Weak USD Fuel Safe-Haven Demand

Gold Price Climbs 2% Amid Renewed Market Uncertainty and Weaker US Dollar

The Gold price (XAU/USD) advanced by 2% on Monday, reaching trendline resistance as market participants sought refuge in safe-haven assets. This comes on the back of a deteriorating risk environment and a broad decline in the US Dollar (USD).

Tariff Tensions and USD Weakness Propel XAU/USD Higher

US President Donald Trump’s announcement of a tariff hike—from 25% to 50% on steel and aluminum imports—has reignited concerns over a possible escalation in the US-China trade conflict. The uncertainty has rattled markets, leading investors to exit risk assets and move into traditional hedges like gold.

Simultaneously, the USD has weakened amid expectations of softer economic data and renewed speculation about future rate cuts from the Federal Reserve. The weaker dollar makes gold cheaper for holders of other currencies, thereby boosting demand.

Geopolitical Risks Support Gold’s Safe-Haven Role

The gold rally is further supported by growing geopolitical friction. China responded strongly to Trump's claims that Beijing failed to uphold parts of the Geneva trade agreement, signaling a renewed diplomatic rift that may worsen in coming weeks.

Technical Outlook – Trendline Resistance in Focus

Gold is currently testing a key trendline resistance level. A confirmed breakout above this zone could open the door toward further upside targets in the $3,375–$3,400 region. Conversely, profit-taking may result in a pullback toward previous support near $3,325.

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