Breaking: Gold hits fresh all-time high as Trump’s tariffs are back on the agenda

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• Gold rallies higher for a third straight day in a row and hits a new all-time high on Wednesday.

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• Overnight, US President Donald Trump lashed out at Ukraine and committed again to several tariffs. 

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• Technically, Tuesday’s daily close above $2,910 worked, boosting the Gold price to a fresh all-time high.

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Gold’s price (XAU/USD) extends this week’s bullish momentum and hits a fresh all-time high at above $2,945 during the European trading session on Wednesday. The up-move comes after United States (US) President Donald Trump’s harsh words on Ukraine overnight, just hours after first talks between the US and Russia officials raised concerns among traders if a peace deal is even in the cards. Meanwhile, President Trump confirmed again that 25% tariffs on automobile imports are coming, extending to pharmaceutical and semiconductor imports in addition. 

Meanwhile, the Federal Reserve (Fed) is set to release the Federal Open Market Committee (FOMC) Minutes for the January meeting. This could throw a spanner in the works for Gold, as several Fed officials have said in recent weeks that rates are reasonable where they are while some inflationary forces are enough for renewed concerns.

Daily digest market movers: Geopolitics take over

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• At 19:00 GMT, the Fed will release its January FOMC Minutes. 

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• Late Tuesday, US President Donald Trump pledged to impose tariffs on automobiles, semiconductors, and pharmaceutical imports of around 25%, Bloomberg confirmed. 

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• Turkish Gold miner Koza Altin aims to produce more than 40 tons of Gold in the next five years, the company says in an exchange filing after the market closed on Tuesday, Bloomberg reports.

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• The US 10-year benchmark is trading at the high of this week, near 4.56% at the time of writing. 

Technical Analysis: Can it get there?

Gold is playing a dangerous game on Wednesday after reaching a fresh all-time high above $2,945. With the Fed Minutes for the January meeting being released later in the day, risk is building for an event that might push Gold back lower. From a technical point of view, this could be considered a rejection at the all-time high and might see sellers drive prices further down. 

The daily Pivot Points have been reshuffled. The first support is seen at $2,921, which is the daily Pivot Point. It has already served as support during the Asian trading session. Should this level come under threat again, the S1 support at $2,906 could do its duty. 

On the upside, the R1 resistance at $2,951 is the first barrier. The R2 resistance at $2,966 is the next level to be reached before considering the $3,000 mark.

XAU/USD: Daily Chart