Gold on its way to hit another fresh all-time high

• Gold nudges higher as US President Trump’s reciprocal tariffs are coming in a few weeks. 
• Bullion is benefiting from safe-haven demand and a substantially weaker US Dollar. 
• Gold is back on its way to test the all-time high at $2,942 on Friday.

Gold’s price (XAU/USD) edges higher, trading at around $2,935 at the time of writing on Friday, and holds good cards to close out this week with a new all-time high and solid gains. The latest leg up comes after United States (US) President Donald Trump signed the executive order for reciprocal tariffs on Thursday. Although it will still take weeks before tariffs are implemented, investors are not taking any chances and are parking their money in safe haven Gold.  

Meanwhile, Gold added another tailwind to its rally, with a substantially weaker US Dollar (USD) and US Dollar Index (DXY) overall. The Greenback is losing traction because President Trump’s reciprocal tariffs need weeks or months before implementation. That opens the window of opportunity for negotiations, and hence, there is no immediate flight to a safe haven on the back of any announcement or signing of an executive order by the US President. 

Daily digest market movers: Geopolitics take over

• Gold advances for a third day to trade near a record high after US President Donald Trump’s order for reciprocal tariffs against several nations increased uncertainty around trade and the global economy, Bloomberg reports. 
• Bullion futures on Comex are trading at a substantial premium to spot. The most active contract is for April, and it is currently above $2,960. Meanwhile, cash is $30 lower, just below its all-time high, Reuters reports.
• At 13:30 GMT, January’s US Retail Sales data will be released. Expectations are for a 0.1% fall in Retail sales compared to the 0.4% increase in December. 

Technical Analysis: What if

Gold is set to hit a fresh all-time high just before the weekend. If the trend continues, it will be tough to fight it. However, a positive shift in geopolitics could move the needle and no longer warrant a higher Gold price.

The first support level on Friday is $2,919, which is the daily Pivot Point. From there, S1 support stands at $2,909. Further down, the S2 support at $2,890 should act as a safeguard and prevent any additional declines to the more significant $2,790 level (October 31, 2024, high).

On the upside, the R1 resistance at $2,938 is the first level that needs to be recovered, followed by the R2 resistance at $2,948. In case the rally continues, the $2,950 big figure will be tested for a break to the upside. Further up, the $3,000 psychological level could be next.

XAU/USD: Daily Chart