Gold all-time-high price: How high can the yellow metal go?

Gold just shattered expectations, surging past $3,059 and setting a new all-time high. The yellow metal has been on an unstoppable run, climbing over 1% as markets reel from President Trump’s latest tariff bombshell. His decision to slap a 25% tariff on imported cars and auto parts has sent shockwaves through the global economy, fueling uncertainty and sending investors flocking to gold.

Trade war sparks a flight to safety

The impact of these tariffs goes far beyond the auto industry. With Canada and the EU already threatening retaliation, a full-blown trade war is brewing. Markets hate uncertainty, and when fear sets in, gold thrives. The Dow is bleeding red while gold continues to shine, proving once again that in times of turmoil, investors turn to the ultimate safe-haven asset.

At the same time, the US Dollar, which had been riding high, is showing signs of weakness, slipping 0.33%.

That’s another boost for gold, which historically performs well when the dollar falters. The perfect storm of economic tension, currency fluctuations, and investor anxiety is playing out in real time.

How high can Gold’s price go?

Market experts are already making bold predictions. Bob Haberkorn, senior market strategist at RJO Futures, believes gold could hit $3,100 soon. And he’s not alone. Goldman Sachs just raised their year-end target to $3,300 per ounce, signaling confidence that the rally still has room to run.

The reason? Central banks across the globe are stockpiling gold at a record pace, and demand from ETFs is surging. When the big players are buying, you know they see something coming.

Another key element to watch is the Federal Reserve. With inflation concerns still looming, today’s PCE data could be a game-changer. Markets have already priced in 64.5 basis points of rate cuts for 2025. Historically, lower interest rates make gold even more attractive since it doesn’t yield interest. If the Fed follows through, gold could have even more room to climb.

Tesla’s unexpected role in the Tariff fallout

While most automakers are bracing for impact, Tesla stock is climbing. With its heavy reliance on US manufacturing, many see Tesla as a winner in this trade war. But here’s the twist-Elon Musk himself isn’t convinced. Despite Tesla’s “Made in America” reputation, many of its components come from abroad, meaning the company won’t escape unscathed.

“The tariff impact on Tesla is still significant,” Musk admitted. “The cost impact is not trivial.” Even with a domestic footprint, the ripple effects of a trade war are impossible to avoid.

Wall Street analysts see Tesla gaining an edge, while legacy automakers scramble to adjust. With nearly half of the midsize crossover segment now facing steep tariffs, companies like GM and Ford could see margins take a serious hit. Bernstein’s Daniel Roeska put it bluntly: “Tesla is the clear structural winner.”

And Trump isn’t stopping at tariffs. He’s also floating a plan to make interest payments on American-made cars tax-deductible - another potential win for Tesla.

The bottom line

Gold’s breakout is more than just a number on a chart-it’s a signal. Trade wars, currency fluctuations, central bank movements, and Fed policy all point to a volatile global financial landscape. Meanwhile, Tesla’s unexpected rise amid the turmoil reminds us that even the biggest disruptions create winners and losers.

Technical outlook: March to $3,100?

At the time of writing, XAUUSD is showing strong upside bias rising to around $3,076. The bullish narrative is also backed by prices remaining above the 100-day moving average. However, RSI towering past 70 and price touching the upper bollinger band hints at overbought conditions. 

If upside pressure persists, the immediate target will be $3,100. In case of a price retreat, a support level to watch would be $3,008. A price collapse could see the yellow metal find support at the $2,884 price level.

As Gold makes history, you can get involved and speculate on the price of the yellow metal with a Deriv MT5 account or a Deriv X account.

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