Gold price sets new record high at $2,940 per ounce
The metal has surged 12% since the start of the year
Gold price extended its bullish streak into the seventh consecutive week of 2025, reaching an all-time high of $2,940 per ounce on Tuesday, February 11. The metal has surged 12% since the start of the year, driven by heightened geopolitical tensions and inflation concerns.
However, extreme overbought conditions triggered a sharp pullback, with prices dropping to $2,905 before stabilizing at $2,912 during the European session. Given the critical $2,900 level now acting as short-term support, traders are assessing whether the rally has more room to run or if a deeper retracement is on the horizon.
Gold price dynamics (September 2024-February 2025). Source: TradingView
Gold technical outlook: $2,900 holds as key support
Gold’s relentless rise has been fueled by escalating geopolitical risks and renewed global trade war concerns. U.S. President Donald Trump’s latest tariffs on commodity imports and threats of reciprocal trade measures have raised fears of economic disruption. Additionally, tensions surrounding Israel’s military actions and hostages negotiations continue to drive demand for gold as a traditional safe-haven asset. Investors seeking protection against potential market instability have contributed to the metal’s strong upward momentum.
Market participants also anticipate that Trump’s protectionist trade policies will contribute to rising inflation, further supporting gold’s appeal as a hedge. However, expectations that the Federal Reserve will maintain steady interest rates citing a resilient U.S. labor market and persistent inflationary pressures, have tempered some of gold’s upside potential. Since gold is a non-yielding asset, steady or higher interest rates generally act as a headwind by increasing the opportunity cost of holding the metal.
Given the sharp rejection at $2,940 due to extreme overbought conditions, the psychological $2,900 level now serves as immediate support. A further dip below this threshold could trigger a deeper retracement, potentially exposing lower support zones. However, if bullish momentum resumes, gold may retest its record highs and extend its seven-week winning streak.
Gold price relentless rally reached a fresh all-time high of $2,890 per ounce on Monday. The metal is now up over 10% this year after six consecutive weeks of gains
