As shown on the XAU/USD chart, gold prices surpassed $2,800 per ounce for the first time in history on 31 January. However, by 3 February, we have seen a pullback from this record high.

Today’s bearish sentiment in gold is driven by the strengthening US dollar, a reaction from currency markets to the tariffs announced by Donald Trump.

This creates a mixed outlook:
→ On one hand, trade war concerns support gold as a safe-haven asset.
→ On the other, a stronger dollar pressures XAU/USD.

According to Reuters, Citi analysts suggest that further tariffs could drive gold prices up to $3,000 per ounce.

The technical analysis of the 4-hour XAU/USD chart shows that:

→ The price is moving within an upward trend, following a linear regression channel drawn from the first candles of 2025.

→ A bullish attempt to break above $2,800 triggered selling pressure, forming a bearish engulfing pattern and pushing the price towards the lower boundary of the channel. If fundamentals continue to support gold’s rise, the $2,800 level could become a significant resistance for the current trend throughout February.

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