XAU/USD Has Resumed Its Upward Trajectory.
XAU/USD has resumed its upward trajectory, with the next potential targets set at $3,365 and $3,415
- Gold strengthens amid rising trade uncertainty and concerns over U.S. debt, pressuring the U.S. Dollar.
- Investors now focus on upcoming U.S. ISM Manufacturing PMI data and remarks from Fed Chair Powell.
- XAU/USD maintains a bullish trend, with buyers eyeing the $3,365 and $3,415 resistance levels.
Gold (XAU/USD) emerged as a key beneficiary of Monday’s broad-based U.S. Dollar weakness, surging nearly $60 as risk-off sentiment intensified. The dollar sell-off was fueled by escalating trade tensions and renewed concerns over the U.S. fiscal outlook.
Market jitters deepened after former President Trump announced plans to double tariffs on steel and aluminum imports, while also escalating disputes with China over critical mineral trade.
These developments have reignited fears of stagflation, as investors worry that slower growth combined with rising inflation could strain the economy. Additionally, concerns over the long-term impact of tax cuts driving U.S. debt higher have further strengthened the “sell America” narrative, continuing to favor gold’s safe-haven appeal.
