Overview: Gold price (XAU/USD) reached a new multi-month high above $2,720 and is currently trading slightly below $2,725, still up over 0.50% for the day. Lower US Treasury bond yields and concerns about increased tariffs proposed by President Donald Trump support the rise in Gold prices. On the other hand, a stronger US Dollar (USD) and a positive sentiment in equity markets slightly limit further gains.
Trump’s statements about 25% tariffs on imports from Mexico and Canada, as well as threats of tariffs against the EU and China, have raised concerns about a global trade war. Expectations that the Federal Reserve (Fed) will cut interest rates twice this year further support Gold prices. Fundamentally, the path for Gold appears to remain upward.
Conclusion: Gold is currently trading near $2,725 and maintains positive momentum. If the price holds above the $2,720 level, bulls may target resistance at $2,735 and then the $2,746-2,748 zone. Conversely, a drop below $2,700 could trigger additional selling pressure, pushing the price toward $2,689 and $2,662-2,660. Gold maintains a bullish sentiment, with further movement influenced by developments in financial markets and US political actions.