Gold’s traditional role as a safe haven asset is coming into play after the metal hit a new all-time high amid jitters over tariffs proposed by President Donald Trump.
In this case, the metal recorded a high of $2,815, reigniting its push toward $3,000. Notably, gold’s 2024 rally was highly anticipated to culminate in a $3,000 milestone before pausing after Federal Reserve interest rate cuts.
Gold was valued at $2,797 by press time, gaining 0.14% in 24 hours. Over the past week, the yellow metal has rallied over 1%, while year to date, it is up a whopping 6.5%.
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Gold’s road to $3,000
Now, an analysis by precious metals forecasting platform Gold Predictors has provided a technical outlook that hints at the possibility of gold reaching $3,000, according to an X post on January 31.
Specifically, gold is trading within an ascending triangle—a pattern characterized by a horizontal resistance line and upward-sloping support, often seen as a consolidation before a significant move.
The analysis suggested a decisive breakout from this formation could propel prices toward $3,000. The bullish sentiment is also backed by the fact that gold is forming a double bottom at the base of the ascending channel, a price reversal signal. The move indicates buyers are stepping in as sellers exhaust their supply, pointing towards new possible highs.
Another analyst, with the pseudonym GDXTrader, shared a similar bullish outlook in an X post on January 31. According to the analysis, gold’s record surge emerged after the metal broke out of a bullish high-base formation, confirming strong continuation within its broader ascending channel.
To this end, the trading expert suggested that each consolidation phase has in the past resulted in higher highs, validating the strength of the ongoing rally.
While highlighting the possibility of a correction, the analyst stated that any pullbacks will likely attract buying interest as investors seek to capitalize on dips within the strong upward trajectory.
Meanwhile, Bloomberg Intelligence’s senior commodity strategist, Mike McGlone, projects that gold could be poised for further gains in 2025. In his January 31 market review, McGlone noted that gold and other precious metals rank at the top of his annual sector performance scorecard.
Why gold is rallying
It’s worth noting that the recent momentum has emerged as the debate on the uncertainty of Trump’s proposed tariffs rages on. Already, Trump has indicated plans to impose 25% traffic on Mexican and Canadian goods.
At the same time, Trump is pushing for interest rate cuts, in contrast to Federal Reserve Chair Jerome Powell, who has expressed reluctance to ease monetary policy.
Notably, tariffs have emerged as a controversial topic, with economists warning that they could raise costs for U.S. manufacturers, push up consumer prices, and slow global trade. However, Trump has remained defiant, dismissing these concerns.
The metal has also maintained an upward momentum in the short term despite significant stock market volatility. This volatility has been triggered amid concerns about potential disruptions in artificial intelligence (AI) infrastructure spending after the emergence of the China-based DeepSeek AI model, which uses far fewer resources compared to industry leaders such as ChatGPT.
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