Gold Price Surges to $1,560 per Ounce: What’s Driving the Rally?

Gold Price Surges to $1,560 per Ounce: What’s Driving the Rally?

Gold prices are making a strong move, surpassing key resistance levels at $1,440—marks that have held for the last six years. This surge comes in the wake of President Donald Trump’s announcement of a potential 10% tariff on $300 billion worth of Chinese imports starting September 1, and China’s retaliatory tariff proposals. Coupled with recent interest rate cuts and rising unemployment in the US, the VIX (Volatility Index) has spiked by 34%.

In response to this uncertainty, investors are flocking to safe-haven assets like gold, pushing prices toward the $1,560 mark, a level last seen in early 2013.

While gold’s trajectory remains positive, it’s showing signs of being overbought. With the VIX climbing and the S&P 500 down by 3%, a pullback to $1,460 could set the stage for a push beyond the $1,500 level, targeting the key $1,560 resistance.