Gold continues climbing as investors turn away from the US dollar. The metal gained nearly $60 on Monday alone. This jump follows increased concerns about US fiscal policy and renewed trade tensions with China.
Donald Trump’s recent announcement about tariffs shocked the markets. On Friday, he proposed doubling tariffs on steel and aluminum imports. He also raised concerns about minerals trading with China. These actions stirred fears of inflation and economic slowdown.
Traders worry about stagflation—when inflation rises but growth slows. This fear has increased the appeal of gold. At the same time, the proposed tax cuts are expected to raise US debt. Investors believe these changes may hurt the economy long-term.
Consequently, many have turned to gold as a safer asset. The ongoing shift away from the dollar has played a major role. As the dollar weakens, gold becomes more attractive. This trend explains why gold continues climbing in global markets.
Technical analysis suggests gold is ready for more gains. Prices have broken past a key resistance level at $3,365. If momentum continues, the next target will be $3,415. That level sits just below the May peak at $3,440.
Meanwhile, traders are closely watching US economic data. Today’s ISM Manufacturing Index and comments from Jerome Powell could shift the market. If Powell signals more rate cuts, the dollar may fall further. In turn, this would push gold prices even higher.
Support for gold remains solid. The first level sits around $3,285. Another key support zone lies at $3,345. As long as these levels hold, the bullish trend is likely to continue.
In summary, gold continues climbing due to several converging factors that are shaking investor confidence. Ongoing trade uncertainty, particularly the escalating tariff threats and tensions with China, has pushed many to seek safer assets
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