Gold prices surged to a new record high of $3,357.40 per ounce, driven by escalating concerns over President Trump’s tariffs, which Federal Reserve Chair Jerome Powell described as ‘significantly larger’ than expected. Powell warned that these tariffs could lead to slower economic growth and heightened inflation, prompting investors to seek gold as a safe-haven asset amid market volatility.
However, the rally paused as some investors engaged in profit-taking ahead of the long weekend. Despite this, strong demand from Chinese insurers and ongoing market uncertainties continue to support gold prices. Citi Research has raised its three-month gold price target to $3,500 per ounce, citing robust demand and a potential physical deficit in the market.
Expected Range for XAU/USD: $3,205 – $3,455
Note: This information does not guarantee profits. Please make your own decisions when trading.