Gold breaks higher as markets react to Trump tariffs and Fed tensions

Gold prices are rising sharply as investors react to escalating geopolitical risks and shifting U.S. monetary policy expectations. President Trump’s aggressive tariff threats and criticism of the Federal Reserve have intensified market volatility. At the same time, traders are closely watching inflation data to gauge future rate cuts. These developments have boosted gold’s safe-haven appeal and fueled bullish momentum.

Trump’s tariff threats and Fed tensions boost Gold prices

Gold prices have surged recently due to escalating geopolitical tensions and growing uncertainty in global markets. U.S. President Donald Trump’s latest tariff threats against Russia have added fuel to investor fears. Trump warned that the U.S. will impose a 100% tariff on Russian goods if President Putin fails to end the war in Ukraine within 50 days. Such aggressive policies raise the risk of further economic instability and global trade disruptions. This makes gold an attractive hedge against geopolitical shocks.

At the same time, Trump intensified his criticism of Federal Reserve Chairman Jerome Powell, demanding a sharp cut in interest rates to below 1%. His remarks highlight the growing political pressure on the central bank, adding to market confusion. Currently, the Fed has held rates steady between 4.25% and 4.50%, but markets are now pricing in two rate cuts before year-end. These dovish expectations have helped support gold, as lower interest rates reduce the opportunity cost of holding non-yielding assets like the yellow metal.

Investors are closely watching the upcoming U.S. Consumer Price Index (CPI) data to confirm the direction of inflation and future Fed policy. A softer CPI reading could reinforce expectations of rate cuts, boosting gold prices further. Conversely, a hotter-than-expected print could delay monetary easing, strengthen the U.S. Dollar, and limit gold’s upside in the short term. However, in the broader context, rising geopolitical risks and policy uncertainty continue to strengthen gold’s long-term fundamental appeal as a safe-haven asset.

Bullish triangle patterns signal long-term Gold breakout

The gold chart below shows a series of powerful bullish formations on the long-term weekly timeframe that reinforce the fundamental narrative. Starting in 2011, gold prices formed a Symmetrical Triangle pattern, which is a classic consolidation structure that often precedes major moves. This pattern remained intact until late 2018, when gold finally broke above the upper resistance line. That breakout confirmed a shift in trend and triggered a sustained rally that gained momentum through 2019 and 2020.

Between 2020 and 2023, gold entered another consolidation phase, this time forming an Ascending Triangle pattern. This continuation pattern suggested ongoing bullish pressure, with higher lows pushing against a horizontal resistance zone. The breakout came in early 2024, reigniting the upward trend. Since then, gold has surged past the $3,200 level and briefly touched $3,375 in July 2025, marking a multi-year high.

Within the ascending triangle, the chart also reveals inverse head-and-shoulders formations. This is another bullish signal that reinforced the trend during the consolidation period. Both major breakouts, first in 2018 and later in 2024, were supported by substantial volume. The intense follow-through price action confirmed the strength of these moves. Currently, gold is trading above $3,360, with no significant resistance in sight. A dovish reaction to the upcoming CPI report could propel prices higher into uncharted territory.

Conclusion

Gold remains well-positioned as markets brace for key inflation data and geopolitical developments. The metal’s strong technical setup, combined with rising global tensions and dovish rate expectations, continues to support its safe-haven appeal. If the upcoming CPI report confirms easing inflation, gold could break into new highs. With uncertainty mounting, investors are likely to stay bullish on gold in the near term.

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