• Gold continues to scale new all-time peaks for the third consecutive day on Wednesday.
• Trade war fears, geopolitical risks, and a spike in volatility benefit the safe-haven bullion.
• The ‘Sell America’ trade should cap any USD recovery and favor the XAU/USD bulls.

Gold (XAU/USD) maintains its strong bid tone through the first half of the European session on Wednesday and seems poised to prolong the recent record-setting run amid a supportive fundamental backdrop. US President Donald Trump’s threat to slap fresh tariffs on eight European countries that opposed his plan to acquire Greenland triggers a sharp uptick in volatility. Apart from this, geopolitical uncertainties weigh on investors' sentiment and continue to underpin demand for the traditional safe-haven commodity.

However, a modest US Dollar (USD) uptick keeps the Gold price below the $4,900 mark amid overbought conditions on short-term charts. Meanwhile, Trump's tariff threats revived the so-called 'Sell America' trade, which should cap the attempted USD recovery from a nearly two-week low, touched on Tuesday. This, along with the anti-risk flow, suggests that the path of least resistance for the XAU/USD pair remains to the upside. Hence, any corrective pullbacks could be bought into and are likely to remain limited.

Daily Digest Market Movers: Gold bulls not ready to give up amid tariffs-inspired risk-off mood

• Renewed trade frictions on the back of escalating tensions linked to Greenland rattle global markets and force investors to take refuge in traditional safe-haven assets, lifting the Gold price to a fresh record high on Wednesday.
• US President Donald Trump said on Tuesday that there is no going back on his ambitious plan to acquire Greenland, citing security concerns in the Arctic, and argued that Denmark is unable to adequately protect Greenland.
• Trump added that Greenland is imperative and threatened to impose tariffs on European allies. French President Emmanuel Macron stressed that respect and cooperation, not coercion, should define relations between allies.
• As relations between the US and Europe remained strained over Greenland’s strategic importance, a sharp spike in bond yields rattled global markets and turned out to be another factor that benefits the precious metal.
• Investors dumped the US Dollar amid the uncertainty, potential retaliation, and an acceleration of the de-dollarization trend. This provides an additional boost to the commodity and also contributes to the strong move higher.
• Meanwhile, traders trimmed their bets for two more rate cuts by the US Federal Reserve in 2026 after Trump said last week that he would prefer to keep National Economic Council director Kevin Hassett in his current role.
• This, however, does little to provide any respite to the USD bulls amid the dominant 'Sell America' trade. Traders now look forward to the release of the US Personal Consumption Expenditure (PCE) Price Index on Thursday.
• The crucial inflation data will be accompanied by the final US Q3 GDP growth report, which could offer more cues about the Fed's future policy path. The outlook, in turn, will drive the USD and the non-yielding yellow metal.

Gold bulls shrug off overbought conditions as channel breakout remains in play

The latest leg up confirms a fresh bullish breakout through the top end of the month-to-date ascending channel. A subsequent strength beyond the $4,800 mark validates the constructive outlook and backs the case for an extension of the well-established uptrend. The Moving Average Convergence Divergence (MACD) line extends above the Signal line, with both above zero, reflecting strengthening bullish momentum; the positive histogram widens, reinforcing the upbeat tone.

The RSI at 81 (overbought) warns of stretched conditions that could cap near-term follow-through and invite consolidation. Should momentum cool while MACD holds in positive territory, buyers would be expected to show interest near the channel support, which, in turn, should contain corrective pullbacks. Conversely, a sustained positive MACD profile and an RSI remaining above 70 would keep buyers in control and extend the appreciating move.

(The technical analysis of this story was written with the help of an AI tool.)