Gold surged higher in trading yesterday Wednesday following a positive reaction from investors to the increasingly tense tariff war between the United States (US) and China.
Although Trump announced a 90-day tariff deferral, China was exempted from the deferral and instead the tariffs were increased.
After China announced an increase to 84% of tariffs on America, Trump did not hesitate to impose new additional tariffs on China of up to 125% effective immediately.
The attraction to safe-haven assets like gold has increased again to boost prices that have fallen since the close of trading last week.
On the XAU/USD chart, which measures the value of gold against the US dollar, the price recovered from the 3000.00 level to surpass the resistance at the 3050.00 zone.
At the end of the New York session, the price reached a high of around 3100.00 before the upward trend continued again in the Asian session this morning (Thursday).
Momentum slowed slightly at the opening of the European session, but the price increase is still expected to continue.
The target is seen at the 3150.00 zone to be reached before the price will challenge the high of 3167.00 to break the all-time high.
However, if the price plunges again, the 3050.00 zone is expected to be a support zone for the price rebound to occur again.
If it continues to move lower, the price risks falling back to around 3000.00 or below that level.
