Technical Perspective:
XAUUSD has broken out of its short-term ascending channel, with higher swing highs reinforcing the bullish momentum. If the rally continues and the price closes above the 127.2% Fibonacci Extension level at 3380, the next target could be the 161.8% Fibonacci Extension near 3500. However, a throwback may lead to a retest of the breakout zone around 3200. A sustained move below this level could trigger a deeper retracement toward the psychological support at 3000.
Fundamental Perspective:
Gold prices surged as investors turned to safe-haven assets amid rising trade tensions. The potential imposition of broader tariffs on critical minerals has heightened geopolitical risks, increasing gold’s appeal as a hedge.
Institutional support remains strong, with continued central bank purchases and ETF inflows reinforcing confidence in gold’s upward trajectory. Meanwhile, tensions escalated further as China ordered airlines to suspend new Boeing (BA) jet deliveries and parts purchases—a direct response to President Trump’s sweeping tariffs on Chinese imports.
This move deals another blow to Boeing, which is already facing reduced market share in China due to ongoing quality concerns. Trump, in response, called on China to return to the negotiating table, stating that “the ball is in China’s court.” However, talks remain stalled, and trade barriers continue to rise—further fueling safe-haven demand for gold.
By Li Xing Gan, Financial Markets Strategist Consultant to Exness