Gold prices surged to an all-time high near $2,950 on Wednesday, buoyed by ongoing concerns over a potential global trade war and expectations of further interest rate cuts by the Federal Reserve. The safe-haven asset continued its bullish trend as investors remained cautious ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes later in the day.
Market analysts suggest that the current price movement reflects a phase of bullish consolidation, with gold maintaining its upward momentum despite nearing overbought territory on technical indicators. Key support levels remain around $2,900, with a potential drop toward $2,878 if selling pressure intensifies. However, the broader trend remains favorable for gold, with resistance at the $2,940-$2,942 range—a level that, if breached, could push prices even higher.
Investor sentiment has been driven by heightened trade tensions, particularly concerns over U.S. tariffs that could escalate into a broader economic conflict. Additionally, speculation that the Federal Reserve may implement further rate cuts has weakened the U.S. dollar, making gold a more attractive investment option.
While some traders are cautious ahead of the FOMC minutes, potential delays in tariff implementations and diplomatic efforts to resolve geopolitical conflicts, including the Russia-Ukraine war, may influence gold’s trajectory in the coming sessions. Nonetheless, market fundamentals indicate that gold’s upward momentum is likely to persist in the near term.