Since the beginning of the year, gold has been on quite a climb, fueled by the looming threat of trade wars, rising geopolitical tensions, and a healthy dose of uncertainty. Back in January, the challenge lay in maintaining levels above the 100-day moving average, but as Treasury yields have dropped, the spotlight now shifts to a potential sprint toward the $3,000 mark.
While December and January often see a seasonal spike, this year gold managed to notch a gain of over 2% last week alone, even as we moved into February. Breaking through the highs seen in October has propelled us into uncharted waters once again.
This bull market, which has been building up steam since October 2023, can feel almost surreal at times. The interplay between a softer dollar, influenced by lower yields and less severe tariffs from the Trump administration, has created a favorable environment for gold. These tariff threats seem to be more of a strategic maneuver, injecting enough uncertainty to keep tensions simmering without sparking a full-blown trade war.
Traders are eyeing the $3,000 milestone for gold at some point this year, but with markets becoming more adept at predicting President Trump’s moves, it’s possible we’ll see gold hit that significant level sooner than anticipated.
