Adding confidence to investors as gold traded higher after Tuesday's surge above the important $2,900 level.
As the US dollar weakened for the second consecutive day, the appeal of gold assets is increasing in a risky market environment.
The implementation of tariffs announced by President Trump resumed in early March on Mexico and Canada.
Meanwhile, China announced retaliatory tariffs on US imports following additional tariffs imposed by Trump earlier.
Observing the current movement of gold prices on the XAU/USD chart which measures the value of gold against the US dollar, the price surpassed two important levels on the rise at the beginning of the week, namely the 2880.00 and 2900.00 levels.
Yesterday's strong surge in gold reached a high of 2927.00 before retreating back to around 2900.00.
Continuing trading today (Wednesday), the price remains hovering above the 2900.00 zone in the Asian and European sessions with movement above the Moving Average 50 (MA50) line maintaining a bullish signal for the price.
The gold price tends to continue its climb higher, returning to target the previous peak zone of 2950.00.
2956.00 remains the all-time high recorded early last week.
However, it is not impossible for the gold price to plunge in the current uncertain market environment.
If it falls below the 2900.00 zone, it can signal a change in trend after the price starts to move below the MA50 support line.
Next, the decline will return to past focus levels such as 2880.00 and 2833.00 before targeting the 2800.00 zone.
