Gold’s Bull Run Accelerates Past $3,000 While Other Assets Lose Momentum

Key Takeaways

• Gold surged to a new all-time high near $3,019, driven by safe-haven demand amid U.S. policy uncertainty.
• Holding above $3,000 could sustain bullish momentum for the precious metal.
• Dow, S&P 500, and Nasdaq 100 futures dipped after two days of gains, with the S&P 500 still in correction territory.

As gold reaches a fresh all-time high, investors are pouring into the precious metal amid economic and political uncertainty.

Meanwhile, stock futures, Tesla shares, and cryptocurrencies are showing signs of weakness, reflecting broader market volatility.

Gold Sets a New Record High

Gold (XAU/USD) extended its rally on Tuesday, reaching a historic high near $3,019.

The surge comes as investors seek safe-haven assets in response to uncertainty over U.S. policy decisions, recession fears, and global geopolitical risks.

Expectations of multiple Federal Reserve interest rate cuts this year have further fueled demand, driving gold’s second consecutive daily gain and its fifth in six sessions.

From a technical standpoint, maintaining levels above $3,000 could support continued bullish momentum. However, the Relative Strength Index (RSI) indicates overbought conditions, suggesting a potential short-term consolidation or pullback.

Key support levels stand at $2,980-$2,978, which could attract buyers. A break below $2,956 may trigger further selling, potentially dragging prices to $2,930-$2,928, $2,900, or last week’s low of $2,880.

Should Investors Buy Gold Now?

“Gold is not everyone’s idea of a suitable portfolio investment—former U.K. Prime Minister and Chancellor Gordon Brown once dismissed it as a ‘barbarous relic’—but the precious metal’s rise to new all-time highs is eye-catching all the same,” said AJ Bell investment director Russ Mould in a statement to CCN.

Mould attributes gold’s rally to central bank purchases and large shipments into the U.S. ahead of potential tariff impositions.

Persistent inflation and concerns over mounting government debt in the U.S. and Europe are also driving investors toward the metal.

“The metal is doing well—but gold mining stocks are yet to shine, judging by how the New York Stock Exchange Arca Gold Bugs index continues to lag. It stands no higher now than it did in April 2006, when gold traded at barely $600 an ounce, not around $3,000,” Mould noted.

Mould suggests exchange-traded commodities (ETCs) or gold tracker funds as convenient options for gaining exposure without the challenges of storing or insuring physical gold.

For more risk-tolerant investors, he pointed to gold mining tracker funds or actively managed funds selecting high-performing miners as alternative strategies.

Market Volatility Hits Other Assets

Stock futures edged lower on Tuesday following two consecutive days of gains that had helped ease recent market losses. Dow, S&P 500, and Nasdaq 100 futures each declined by 0.3% to 0.5%.

The S&P 500 remains in correction territory despite a modest recovery, while the Nasdaq and Dow also remain down for the year.

Tesla shares dropped over 3% in pre-market trading after RBC lowered its price target, citing intensifying competition in the electric vehicle market.

Investors are now focused on the Federal Reserve’s two-day policy meeting and developments in Washington.

In the foreign exchange market, EUR/USD remained above $1.09, buoyed by risk sentiment. However, analysts warn that a failed fiscal reform vote in Germany’s Bundestag could weaken the euro. Strong U.S. economic data could also trigger a resurgence in the dollar.

Meanwhile, in the crypto space, the total global crypto market cap stands at $2.7 trillion, reflecting a 0.8% decline over the last 24 hours. Bitcoin (BTC) is trading at $82,605, down 1.3% on the day.