Lagos — Gold prices experienced a notable bullish rally, reaching $2,858 per ounce, driven by ongoing market uncertainty.
Heightened trade tensions, particularly following the U.S. administration’s imposition of a 10% tariff on Chinese imports—which has already taken effect—and the delayed but looming tariffs on Canadian and Mexican products, have fueled investors’ shift toward safe-haven assets.
Although the U.S. dollar index initially strengthened earlier in the week, acting as a headwind for gold, its subsequent retracement to 107 helped revive buying interest in early trading sessions.
From a technical perspective, gold is currently testing resistance at its recent high, which stands 2.5% above October’s peak.
This positioning could trigger some profit-taking. However, the broader trend remains supported by hedging activities, as escalating trade tensions and the prospect of retaliatory tariffs continue to shape market sentiment.
Given this backdrop, gold prices are likely to remain elevated, with potential for new record highs should geopolitical and macroeconomic risks persist.
*Ahmad Assiri Research Strategist at Pepperstone
