Gold prices hit record high of $2,817 on trade war fears, potential $3,000 peak predicted.

From Investing.com: 2025-02-03 02:20:00

Gold prices surged to a record high of $2,817 amid fears of a trade war. US President Trump imposed new tariffs on Mexico, Canada, and China, potentially disrupting $2.1 trillion worth of trade. Analysts predict gold could reach $3,000 as the global economy faces uncertainty. XAU/USD fell due to a stronger US dollar, but safe-haven demand remains strong.

The euro plummeted due to Trump’s tariffs, sparking global trade war fears. Markets fear the eurozone could be next. Global equities dropped, with the DXY reaching a one-month high. Trump’s tariffs could reduce US growth by 1.5% and lead to recessions in Canada and Mexico. EUR/USD recovered slightly but remains volatile.

The Australian dollar plunged after Trump imposed new trade tariffs, reaching a multi-year low. AUD is sensitive to risk and China’s economy. Despite oversold conditions, a technical rebound is likely. Traders should monitor trade tariff negotiations and US ISM Manufacturing data. Australian retail sales data slightly corrected the dovish RBA outlook.



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