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Gold (XAU/USD) continues its historic rally, recently breaking above the $4,000 mark and setting new all-time highs. The surge comes amid escalating geopolitical tensions and renewed economic uncertainty, as U.S. President Donald Trump reignited the trade war with China by announcing a sweeping 100% tariff on all Chinese imports effective November 1. The move, in retaliation for the Beijing export curbs on rare earth minerals, has rattled global markets and triggered a flight to safe-haven assets.
Geopolitical shock: Tariffs, trade war and flight to safety
The tariff escalation marks the end of a fragile truce between the two largest economies in the world. In response to restrictions on critical minerals by China, the U.S. has not only imposed tariffs but also introduced new export controls on strategic software. These developments have fueled fears of supply chain disruptions and global economic slowdown, prompting investors to seek refuge in gold, which surged over 2% to $4,071.95 per ounce and briefly touched $4,116.77.
Technical analysis: Gold eyes $4,200 and beyond as momentum builds
Gold is riding a strong uptrend, with price action now hovering near $4,020 to $4,060. A clean breakout above $4,100 to $4,120 would reinforce bullish continuation, potentially targeting $4,200 and beyond. However, failure to hold above $3,950 to $4,000 could signal a pause or retracement.
- Resistance: $4,100, $4,120 followed by $4,200 and beyond
- Support: $4,000, $3,950, $3,900 and $3,850
- Bullish setup: Long entries on pullbacks toward $3,950 to $4,000 with reversal confirmation, or breakout continuation above $4,100
- Bearish setup: Short or partial profit-taking if price fails to hold above $4,000 and shows reversal signals.
- Range play: Trade within $3,950 and $4,100 until breakout confirms direction, using tight stops.
What you should look out for
With gold opening the week near the upper end of its range, momentum remains bullish. Traders should monitor tariff developments, central bank responses, and volume confirmation around key resistance levels. As global uncertainty intensifies, the role of gold as a safe-haven asset is once again front and center.
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