Gold price hits record $2,955 as traders relocate reserves fearing Trump tariffs
Gold extends gains ahead of the FOMC meeting
Gold price continues its relentless uptrend, defying technical signals and market uncertainties. Despite the daily RSI remaining in overbought territory for weeks, gold has surged to a fresh record high of $2,955 per ounce, gaining 2.35% this week alone.
The metal’s year-to-date gains now stand at an impressive 12.57%, driven by a mix of geopolitical developments and Donald Trump’s influence on the gold market.
The significant development in the gold market is the large-scale movement of gold reserves from the Bank of England’s vaults to the United States. Traders fear potential tariffs on gold due to Trump’s trade policies and are rushing to relocate holdings ahead of any restrictions. This shift has created a divergence in gold pricing, with physical gold prices in London declining while gold futures in New York have surged. The arbitrage opportunity has provided traders with a rare chance to capitalize on the price differential between the two markets.
Silver price dynamics (February 2025). Source: TradingView.
Investors weigh Trump impact on gold as prices test new highs
As gold faced resistance at $2,943 per ounce, it eventually broke through yesterday and touched $2,947 before a slight pullback. Today's rally saw the metal surpass the previous day’s high and extend further gains to $2,955. Market participants are closely watching whether the trend can hold above this level or if a retracement is imminent.
Near-term support now lies at the previous resistance level of $2,943, which has turned into a support zone. If prices hold above this level, the uptrend could continue, potentially targeting higher levels. However, given gold’s rapid rise, some profit-taking could emerge, leading to short-term pullbacks. Traders are monitoring whether sustained demand will push gold even higher or if resistance at current levels will cap further gains.
Ahead of the FOMC meeting, Gold approached a record high of $2,943 after rebounding from $2,877 support. The metal has gained 2% this week, marking its eighth straight week of gains.
