XAU/USD Hits Record $4,050 on Trade Fears and Market Volatility

Gold prices achieved a historic milestone, reaching $4,050 per ounce as escalating trade tensions and widespread market uncertainty drove unprecedented safe-haven demand. The precious metal gained 2.3% in Monday's session alone, with XAU/USD breaking through multiple resistance levels. EUR/USD volatility increased amid the risk-off environment, trading in a 1.0650-1.0720 range, while GBP/USD struggled near 1.2480 support. The surge in gold reflects growing concerns about global trade disruption and potential currency debasement as central banks may need to respond to economic headwinds. Technical analysis shows gold entering uncharted territory with no historical resistance levels, though overbought RSI readings above 75 suggest potential for short-term consolidation. The correlation between gold strength and dollar movements has temporarily decoupled, indicating exceptional market stress. Traders should monitor the $4,000 psychological level as new support, with any trade resolution potentially triggering profit-taking in precious metals.