The price of gold is trading in a small range ahead of the all-time high and will look to break to the upside or the downside.
XAUUSD – Daily Chart
The price of XAUUSD found a base on Tuesday and may make a move toward the all-time high at $2,950. Downside support comes in ahead of $2,825.
Gold continued an uptrend from February, hitting multiple new highs before pulling back to end the month. The move was echoed across major currencies as global risks increased with tariffs and war threats.
According to The World Gold Council’s Gold Return Attribution Model (GRAM), dollar weakness during the month was one of the primary drivers of gold’s outperformance. The increase in geopolitical risk and a drop in interest rates added to the gains.
A large portion of the buying came from gold ETF activity, which saw massive net inflows of US$9.4bn (100t), marking the strongest month since March 2022.
“Gold has been consolidating in the midst of mayhem within striking distance of the all-time high,” said Mizuho’s Robert Yawger. “it is still only one big day away from ringing the bell”.
If gold does hit new highs, it may go further as investors divert money from beaten-down tech stocks into bullion.
Another driver of gold has been the theory that there is gold missing from Fort Knox, the strategic store in the US. Donald Trump said he will personally investigate the issue but investors are considering the need for further gold purchases from the US.
That theory was backed up by a surge in US imports as the country imported a record $329.5 billion worth of goods in January, $36 billion more than the prior month. Data from the Commerce Department showed that finished metal shapes, which include gold bars, accounted for nearly 60% of the monthly increase in imports.
The trend for physical gold could continue and ETF flows will continue if new highs arrive in the next week or so.
