Gold News: Trump Tariff Threat Ignites Safe-Haven Bid, Lifts Gold Price Above $4000

Gold Price Reclaims $4,000 as Trump Tariff Threat Sparks Safe-Haven Bid

Spot gold (XAU/USD) reclaimed the $4,000 level on Friday, closing at $4016.68, up $40.44 or +1.02%, as traders responded to a fresh round of geopolitical risk. The rally was triggered by former U.S. President Donald Trump’s announcement of potential new tariffs on Chinese imports, which reignited safe-haven demand and accelerated gold’s rebound from the session low of $3944.43.

Trump’s Tariff Threat and Fed Cut Bets Boost Gold Market

Trump’s comments on Truth Social—indicating no interest in meeting with China’s President Xi and proposing a “massive” tariff increase—sent shockwaves across markets. Equities fell sharply while gold surged, with independent metals trader Tai Wong noting, “Heating up the trade war again will tank the dollar and be good for safe-havens.”

This added to already-strong tailwinds for bullion. Traders are increasingly pricing in a 25 basis point Federal Reserve rate cut in both October and December, pushing Treasury yields lower and undercutting the dollar. The U.S. Dollar Index fell 0.6% on Friday, making gold more attractive for non-dollar buyers and fueling ETF inflows.

Central bank gold-buying continues to provide a strong bid under the market, while broader concerns about a U.S. government shutdown and political instability in France are adding to risk-off flows.

No Overhead Resistance as Gold Eyes Fresh Highs

Technically, the main trend remains up. Friday’s close keeps gold well above a pair of minor pivot supports at $3939.38 and $3888.43. Momentum will remain bullish unless the market breaks below $3819.42, which would signal a near-term shift lower.

With gold trading in uncharted territory, there are no traditional resistance levels above the current record high of $4059.35. Psychological round numbers like $4100 and $4200 become the next upside markers. On the downside, the 50-day moving average at $3592.82 is the most reliable trend support for now.

Gold Price Forecast: Bullish Bias Holds with Upside Open Above $4059.35

The outlook for gold remains bullish as long as price holds above $3888.43. Traders will be watching for a breakout above $4059.35 to confirm a continuation toward $4100+. However, given the speed of recent gains, a short-term pullback toward $3939.38 or even $3888.43 can’t be ruled out.

If geopolitical tensions escalate or Fed rate cut bets firm up further, gold could catch another strong bid. A break below $3819.42 would neutralize the short-term bias.

More Information in our Economic Calendar.