XAU/USD: Gold Rockets to $3,250 as Traders Ramp Up Safe-Haven Bets Amid Tariff Onslaught

Precious metal just went full beast mode, pumping to never-before-seen levels. What’s next for bullion?

💥 Gold Surges to New Record

• Bullion XAUUSD just got a whole new meaning as bulls really took it home today. On Friday, prices of the yellow metal dashed higher with no warning, extending a record-breaking run for the third day in a row. The yellow metal surged to an all-time high of $3,250 per ounce, up 2% on the day and 10% over the past three sessions.
• Traders rushed into the safe-haven asset amid a rising storm of tariff threats mixed with a trade standoff between the US and China. The neverending game of tariff hikes is putting a dent in the macro landscape but clearing the way for gold purchases.

📞 Uncertainty Driving the Narrative

• Widespread economic concerns ignited the rally but the dollar gave it legs. The US currency spiraled to the downside, spooked by recession clouds forming over the American economy. The dollar index cracked 100.00 and marked a two-year low of 99.01 while rival currencies stepped up their game and rallied hard with the euro charting a three-year high earlier today.
• Global stocks are also taking a beating in what’s shaping up as the wildest week for Wall Street in ages. The US equity market on Wednesday posted its best day since the 2008 financial crisis but then pared back the gains on Thursday. Friday isn’t looking too great either with the major stock averages down in mid-session trading.

🔥 Adding Fuel to the Fire

• Beijing and Washington kept passing the ball with each side coming up with a new tariff hike for the world to witness. On Friday, China increased its tariffs on US imports to a mammoth 125%, counteracting the US decision to amp them up to a total of 145%.
• Swiss banking giant UBS voiced its bullish stance on gold, saying that markets could propel its price by another 5% or so. “We believe gold has further to run - in the upside case, we target $3,400-3,500/oz over the months ahead,” the lender said.