Gold Price Forecast: The XAU/USD record rally appears unabated ahead of Trump’s ‘Liberation Day’

Gold price captures $3,100 early Monday, fresh record high and counting.
WSJ reports potential higher, broader Trump’s April 2 tariffs, downing the US Dollar, Treasury yields.
A pullback could be in the offing for Gold price as the daily RSI stays heavily overbought.

Dhwani Mehta FXStreet

Gold price continues to rally in Asian trading on Monday, marking another record high well above the $3,100 mark. Gold buyers remain undeterred due to heightened fears of a potential global trade war and its economic repercussions.

Gold price tops $3,100 for the first time on record

The buying interest in the Gold price remains unabated, with markets scurrying for safety in the traditional store of value amid speculations surrounding US President Donald Trump’s tariffs plans on ‘Liberation Day’, April 2.

The latest Wall Street Journal (WSJ) report highlighted that US President Donald Trump could aim for higher and broader reciprocal tariffs on Wednesday, driving riskier assets into a tailspin while bolstering the ultimate safe-haven Gold price.

“Advisers have considered imposing global tariffs of up to 20% that would hit virtually all US trading partners,” the WSJ reported.

Markets are dreading the looming risks of a full-fledged global tariff war, which is likely to unfold after Trump’s reciprocal tariffs. This could intensify inflationary pressures, leading to stagflation.

Mounting concerns over a potential stagflation in the United States (US) are weighing heavily on the US Dollar (USD) and the US Treasury bond yields, allowing the non-yielding Gold price to clinch fresh record highs.

However, the further upside in the Gold price could be capped if traders opt to cash in on the record rally ahead of Wednesday’s tariffs announcements by Trump.

The US data-docket remains light at the start of the week, leaving the Gold price at the mercy of the broad market sentiment and Trump’s tariff expectations.

Gold price technical analysis: Daily chart

A technical sell in the Gold price also cannot be ruled out as buyers have already achieved the ascending triangle target, measured at $3,080, last Friday.

Additionally, the 14-day Relative Strength Index (RSI) is trending in the highly overbought region above 75, warranting caution for buyers.

If a correction unfolds, the immediate support is seen at the intraday low of $3,077, below which the $3,050 psychological barrier will be tested.

If the selling momentum intensifies, the March 26 low of $3,012 could come to buyers’ rescue.

Conversely, if buyers retain control, the next target on the topside is seen at the $3,150 threshold.

Fresh buying opportunities would emerge above that level, opening doors for a fresh uptrend toward the $3,200 round figure.

Author

Dhwani Mehta
FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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