Gold Surges as Trump Tariff Threats Boost Fed Rate Cut Expectations

Gold prices have rallied sharply as renewed tariff threats from former President Trump increased market expectations for Federal Reserve rate cuts. The precious metal's surge reflects growing safe-haven demand amid trade policy uncertainty, weakening the US dollar index. EUR/USD has benefited from dollar weakness, while GBP/USD remains pressured by domestic UK concerns. The potential for escalating trade tensions has shifted market sentiment toward risk-off positioning, with traders pricing in a higher probability of Fed easing to counter economic headwinds. Gold's technical breakout above key resistance levels suggests further upside potential, particularly if geopolitical tensions intensify. The correlation between gold strength and dollar weakness remains intact, with major currency pairs likely to experience increased volatility as markets digest trade policy implications and adjust rate cut expectations for upcoming FOMC meetings.