XAU/USD: Gold Touches New Record at $2,956 but Momentum Wanes as Traders Pull Back

Bullion continues its upside swing but the sentiment has turned more challenging for bulls. How long before they get to $3,000?

🧈 Gold Scratches Fresh Record

• Gold prices XAUUSD remained well-bid on Tuesday and even peaked to a fresh record intraday high. It’s $2,956 — that’s how much gold bugs were able to get for an ounce before bears stepped in and said “That’s enough.” Prices slipped about $20 to float between $2,930 and $2,940 an ounce.
• Trump’s looming tariff hikes are still fuel to the precious metal as gold dealers fear they might get treated with a tariff. Historically, gold has been exempt from extra tax charges on import.

🎨 Trump’s Tariff and Their Impact

• Hence, safe-haven demand continues to underpin the yellow metal. There’s also the added worry that Trump’s tariffs might bump up inflation and rattle consumer spending as well as eat into corporate profits and lead to all sorts of economic and stock-related troubles.
• Trump said Monday his tariff hikes on Mexico and Canada are about to get implemented as the extended deadline approaches next week after a one-month pause.

😵 Gold’s Record Rally Needs More Fuel

• Gold’s record-setting rally has recently hit a ceiling. To break out of it, bulls will need to blast through $2,960 as market watchers have set their gaze on the $3,000 milestone.
• Against this backdrop, traders expect the volatility in gold prices to continue throughout the week even without too many huge news and events on deck.