On Monday, February 10, gold prices surged by over 1%, reaching record highs primarily due to a newly announced tariff plan that intensified demand for this precious metal often considered a safe-haven investmentThis boost drove gold prices to an unprecedented peak, reflecting growing anxiety over economic conditions.

As of the latest report, the spot price of gold had risen by 1.2% to $2,895.38. During التداول، الذهب وصل إلى مستوى قياسي تاريخي قدره $2,898.64، مما يجعله السابع في سلسلة الانتصارات هذا العام. American gold futures experienced a similar uptick of 1.2%, climbing to $2,920.8. This significant increase has caught the attention of investors and analysts alike, raising questions regarding the future trajectory of gold prices amid global economic uncertainties.

According to reports from financial news sources, the rise in gold prices has been notably spurred by the United States’ plan to impose tariffs on various countriesOver the weekend, it was announced that a 25% tariff on steel and aluminum imports would come into effect on Monday, with additional retaliatory tariffs expected to be unveiled shortly thereafterThis development not only highlights the rising tensions in international trade but also created an environment rife with uncertainty, which can erode confidence in equity markets and stimulate increased investment in gold.

Investors have increasingly turned to gold as a hedge against inflation, particularly as real yields—interest rates adjusted for inflation—declinedSuch economic conditions have made gold an appealing alternative for risk-averse investors seeking stability in a turbulent marketThe geopolitical stresses amplified since the start of the year have added to gold's allure, with many anticipating that prices could break through the psychologically significant $3,000 barrier sooner than expected.

In January, gold faced the challenge of maintaining its price above the 100-day moving average, a critical technical level

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However, as US treasury yields dropped, it appeared the market was setting its sights on new highsWhile traditional seasonal patterns often dictate that gold prices see a spike during December and January, the momentum seen in February has led many to suggest that a sustained bullish market is underwayA pattern of growth that has persisted since October 2022 points to a lucrative period for gold investors, leaving some analysts questioning whether this trend is sustainable.

The dollar's performance, weighed down by lower yields and trade threats from the US, has fostered a favorable environment for goldThese tariffs, although partially focused on affecting trade negotiations, do create a degree of unpredictability, which typically prompts investors to flock toward the safety of gold.

Market participants are largely optimistic that gold will mouth $3,000 in price this year, albeit recognizing that clearer policymaking from the US may lead to this milestone being reached sooner rather than laterGiovanni Staunovo, an analyst from UBS, remarked that the unveiling of new tariffs has exacerbated concerns surrounding both inflation and economic growth, propelling gold higher; he maintains a target price forecast of $3,000.

The recent back-and-forth on tariffs adds another layer to an already intricate economic narrativeThe US government indicated there would be immediate implementation of additional tariffs on all steel and aluminum imports, signaling a marked shift in trade policy reformFurther announcements about reciprocal tariffs are expected soon, underscoring that this is not merely a short-term blip in the markets; rather, it represents an ongoing trend that could reshape the landscape of global trade.

Analysts from ANZ Bank highlighted the potential for gold to be swept into a whirlwind of retaliatory tariffs, which could lead to turmoil in the physical marketThis could create further complications for commodities beyond just gold as various players react to the tumultuous environment.

Federal Reserve officials have expressed that there remains a lack of clarity regarding the effects of US policies on economic growth and persistently high inflation

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Gold traditionally stands as a refuge for investors during economic and financial turbulence—a characteristic that remains pertinent considering the current climateHowever, the inherent nature of non-yielding assets tends to detract interest when interest rates riseNevertheless, analysts like Kelvin Wong from OANDA noted that he does not foresee any significant pullback in gold prices unless the dollar strengthens considerably.

Analyzing gold's technical indicators reveals interesting patternsOn the daily charts, the continuation of gold's upward trend has set new records, instilling confidence among buyersThose looking to manage risk should consider levels around $2,790 for more favorable risk-reward ratios, where sellers are watching for signs of a break below this level to pursue targets around $2,600.

Examining the four-hour charts reveals an increase in momentum as prices deviate from established trend linesIn cases of deeper corrections, buyers may look to retest trend line support; however, sellers are eager to push prices below these lines to strengthen bearish positions with aspirations toward the $2,600 target.

The hourly charts suggest that prices are nearing the upper boundaries of average daily ranges, signaling a potential for consolidation or retracementFor short-term traders, falling below $2,882 could indicate a continuation of the corrective action, potentially leading back towards upward trend line positions and offering an initial buying opportunityConversely, if prices breach these upward trend lines, a deeper correction may follow, reaching back to key long-term trend lines.

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