Gold price prediction: Safe-haven demand drives gold higher amid escalating trade tensions
Demand for safe assets is growing
Gold price has maintained its upward momentum in March, extending a two-day winning streak and positioning itself for a potential third consecutive bullish close. The precious metal met resistance at $2,920, leading to consolidation between $2,900 and $2,920 throughout the Asian and European sessions. However, with safe-haven demand strengthening and technical indicators supporting further gains, Gold may be set to challenge higher levels.
The recent rise in Gold prices has been supported by geopolitical and economic factors. The implementation of new U.S. tariffs, including a 25% levy on Mexican and Canadian imports and an increase in Chinese duties to 20%, has escalated trade tensions. This has driven investors toward Gold as a safe-haven asset, reinforcing its bullish trend since the beginning of March.
Gold price outlook: Indicators point to bullish momentum despite consolidation
Gold price dynamics (Feb 2025 - March 2025). Source: TradingView.
From a technical perspective, Gold’s price action remains constructive. The Fibonacci golden ratio (0.618) at $2,910 is acting as a key near-term support level. Additionally, both the daily and 4-hour RSI indicators are in bullish territory, reflecting strong buying interest and increasing the probability of a breakout above $2,920 resistance. If Gold holds above this zone, it could propel prices toward the recent peak at $2,955.
However, rising U.S. Treasury yields are exerting some pressure on non-yielding assets like Gold. This has contributed to the consolidation phase seen today. Traders will be watching for a decisive move as Gold continues to test resistance. If bullish momentum persists, a push toward $2,955 remains likely. Conversely, failure to sustain above key support could slow the rally, keeping price action contained within the current range.
Gold rebounded as trade tariffs and geopolitical tensions weakened risk appetite. Technically, it climbed above $2,877 but consolidated between $2,877 and $2,900.
