Gold prices held steady near their all-time high on Thursday, as escalating global trade tensions drove investors toward the precious metal. Concerns over economic uncertainty and geopolitical risks have strengthened demand for safe-haven assets, keeping gold well-supported despite fluctuations in broader financial markets.
The latest rally in gold comes amid rising tensions between major economies, with renewed disputes over tariffs and trade policies weighing on market sentiment. Investors are increasingly hedging against potential economic fallout, shifting capital away from riskier assets and into precious metals as a store of value.
Gold US Dollar per Ounce 1-D Chart as of February 20th, 2025 (Source: TradingView)
A weaker U.S. dollar has also contributed to gold’s resilience, making the metal more attractive to international buyers. While the Federal Reserve has kept a cautious stance on interest rates, speculation about potential monetary easing later this year has pressured the dollar, further boosting gold’s appeal. Meanwhile, bond yields have remained volatile, reducing the opportunity cost of holding non-yielding assets like gold.
Central banks around the world have also continued stockpiling gold, adding to the bullish sentiment. With inflation concerns persisting and economic growth showing signs of slowing, many policymakers have favored gold as a hedge against financial instability, reinforcing strong demand.
From a technical perspective, gold remains well-supported above key levels, with analysts watching for a sustained break past its previous record highs. If risk sentiment continues to deteriorate, gold could push even higher, with next potential targets near $2,150 per ounce. On the downside, $2,100 remains a key support level, with any pullback likely to be viewed as a buying opportunity by long-term investors.
Looking ahead, traders will closely watch upcoming economic data and geopolitical developments, which could determine whether gold extends its gains or faces some short-term corrections. Until broader market risks subside, the precious metal is expected to remain in demand, acting as a hedge against ongoing global uncertainty.
