Gold (XAU/USD) surged to a fresh all-time high of $2,940 on January 11 before retreating slightly to trade around $2,906 at the press time.
The surge came amid intensifying geopolitical tensions and trade war concerns, with analysts closely watching key technical levels and macroeconomic indicators that could determine the metal’s next direction.
As investors weigh the impact of U.S. tariffs, inflation risks, and Federal Reserve policy, gold remains in focus as a preferred safe-haven asset amid rising uncertainty.
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Gold technical analysis: Key levels to watch
Notably, RLinda, in a recent TradingView post, highlighted that while gold remains bullish, a short-term correction is likely as the price tests key Fibonacci retracement zones before continuing its uptrend.
Currently, gold faces resistance at $2,910 and $2,929, while support levels stand at $2,898, $2,882, and $2,870.
Before resuming its upward push toward $2,950 to $3,000, the analyst noted that a retest of the $2,898 to $2,870 zone, which aligns with the 0.5 to 0.7 Fibonacci retracement levels could provide the necessary foundation for further gains.
What’s driving Gold prices?
The metal’s latest rally was fueled by geopolitical tensions and renewed trade war concerns following U.S. President Donald Trump’s announcement of 25% tariffs on metals and plans for reciprocal tariffs on other countries.
This stance has stoked fears of inflation and economic instability, driving investors toward safe-haven assets like gold.
However, despite gold’s strong performance, a strengthening U.S. dollar has led to some short-term pullbacks.
Market sentiment is also being shaped by expectations surrounding key U.S. economic data, with investors closely watching the Consumer Price Index (CPI) and Producer Price Index (PPI) reports due later this week.
The outcome of upcoming economic data will likely shape the Federal Reserve’s interest rate trajectory, though Chair Jerome Powell told lawmakers on January 11 that the central bank is in no rush to cut rates anytime soon.
Outlook: Will Gold hit $3,000?
With Fed Chair Jerome Powell’s testimony and key inflation data on the horizon, gold is expected to remain highly volatile in the near term.
While the metal remains susceptible to broader market movements, analysts continue to see $3,000 as a realistic target.
A recent Finbold report highlights ChatGPT’s AI projections, which indicate that gold could reach this milestone by the first quarter of 2025, further strengthening bullish sentiment despite short-term fluctuations.
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