Gold surges past $3,200 as trade war tensions intensify

Gold soared above $3,200 on Friday, setting multiple record highs as demand for safe haven assets surged amid escalating trade war tensions and a weakening dollar.

The sharp rally was sparked by President Trump’s decision to pause tariffs on most countries for 90 days while excluding China and raising duties on Chinese imports to 125%. China’s immediate retaliation with equivalent tariffs sent shockwaves through global markets.

Gold led the gains across markets, joined by traditional safe havens like the Swiss franc and Japanese yen.

Fears over the growing scale of the US-China trade conflict have intensified concerns of a potential recession, likely keeping bullish momentum behind gold in the coming months. A push toward the $3,500 mark is on the radar if no progress is made in trade talks.

Near-term, a modest pullback may occur on profit-taking after a strong three-day rally, though any dips are expected to be shallow and offer fresh buying opportunities.

The psychological $3,200 level has flipped to support, with the previous high at $3,167 also seen as a key floor.

Fibonacci projections from the $2,956 upswing highlight potential next targets at $3,248, $3,273, and $3,298.

Res: 3237; 3248; 3273; 3298

Sup: 3200; 3175; 3167; 3136