Trump’s Tariffs Push Gold Price Down from Record High
As shown on the XAU/USD chart, gold prices surpassed $2,800 per ounce for the first time in history on 31 January. However, by 3 February, we have seen a pullback from this record high.
Today’s bearish sentiment in gold is driven by the strengthening US dollar, a reaction from currency markets to the tariffs announced by Donald Trump.
This creates a mixed outlook:
→ On one hand, trade war concerns support gold as a safe-haven asset.
→ On the other, a stronger dollar pressures XAU/USD.
According to Reuters, Citi analysts suggest that further tariffs could drive gold prices up to $3,000 per ounce.
The technical analysis of the 4-hour XAU/USD chart shows that:
→ The price is moving within an upward trend, following a linear regression channel drawn from the first candles of 2025.
→ A bullish attempt to break above $2,800 triggered selling pressure, forming a bearish engulfing pattern and pushing the price towards the lower boundary of the channel. If fundamentals continue to support gold’s rise, the $2,800 level could become a significant resistance for the current trend throughout February.