Gold hit a new record high, trading just below $2,990/oz, after moderate US inflation figures supported the case for the US Federal Reserve to ease monetary poliicy. Swap traders are fully pricing in another quarter-point cut in June, with about 70 basis points of easing expected for all of 2025. In addition, concerns that tariffs will raise inflation and slow economic growth are driving demand for safe-haven assets like gold. Total known holdings of gold exchange-traded funds have grown by about 3.5 million ounces so far this year to nearly 86.4 million ounces.
Gold (XAU/USD) prices had hit a new all-time high of $3,004 earlier, before falling back below $3,000, still posting weekly gains of over 2.5% for now at the time of writing on Friday. Additional flows and demand for bullion came after US President Donald Trump retaliated against retaliatory tariffs from Europe, saying he would impose a 200% tariff on wine and champagne from the region.
A new all-time high of $2,993 could easily be taken out any day now. Look for the psychological $3,000 level on the way up. Beyond that, it’s uncharted territory where daily Pivot Point resistance and support can help guide direction. Daily R1 resistance at $3,007 and R2 resistance at $3,026 are certainly levels to watch.
On the downside, the daily Pivot Point is at $2,970. If that level is broken, watch for S1 support around $2,951. Further down, S2 support is at $2,914, ahead of the big $2,900 mark, which should be strong enough to catch any correction.