Gold Price Nears $3,400 on Geopolitical Tensions, Tariff Uncertainty, and Safe-Haven Flows

Gold Price Tests $3,400 Amid Growing Safe-Haven Demand

Gold (XAU/USD) continues its upward trend and now trades near $3,400 per troy ounce, reflecting strong safe-haven demand. The rally follows escalating geopolitical risks and rising macroeconomic uncertainty, pushing investors away from traditional assets and into precious metals.

Ukraine-Russia War Escalation Sparks Gold Demand

The recent spike in gold prices was triggered by Ukraine’s intensified military actions inside Russian territory, including reported attacks on fighter aircraft and critical infrastructure like the Crimean bridge. These developments raise concerns over further escalation and regional instability, driving investors toward gold.

US Tariff Hikes Add to Market Volatility

In parallel, the United States has doubled tariffs on steel and aluminum imports, reigniting global trade war fears. These protectionist moves increase market volatility and inflation risks—historically bullish conditions for gold.

Skepticism Grows Over US Dollar and Debt Levels

Beyond war and trade concerns, investor anxiety has grown over the rapid rise in US government debt and the long-term safety of the US dollar. This has led to renewed diversification into gold as a more reliable store of value.

US Labor Data in Focus: Fed Policy Implications

Traders now await the latest US Nonfarm Payrolls report. Strong employment data could weaken gold by reducing expectations for Fed rate cuts. Conversely, disappointing figures would reinforce dovish sentiment and support gold’s breakout above $3,400.