Gold prices extended their gains on Monday, President Trump’s threats to impose 25% tariffs on imports from Canada and Mexico beginning February 1

  Gold Price Forecast: XAU/USD Eyes All-Time High Near $2,800 Gold prices extended their gains on Monday, surpassing the $2,740 mark, as political uncertainties in the U.S. continued to bolster demand for the precious metal. With ongoing developments surrounding trade tariffs, President Trump’s threats to impose 25% tariffs on imports from Canada and Mexico beginning February 1 further fueled upward momentum in the gold market. As the U.S. Dollar (USD) failed to maintain its initial strength, the gold rally gained steam, marking the fourth consecutive week of gains for XAU/USD. Investors returned to their desks after the Martin Luther King Jr. holiday and Inauguration Day, contributing to the rally. The initial U.S. Dollar bid, sparked by tariff concerns, faded as the impact of the threat wore off. This led to a pullback in the U.S. Dollar Index (DXY), further propelling gold prices higher. In the coming week, attention will remain on developments from the White House, with limited major economic data expected. Traders are also preparing for the Federal Reserve's meeting on January 28–29, where no interest rate changes are anticipated. Gold's outlook remains robust as market participants anticipate potential volatility driven by political events and central bank decisions. Gold’s Short-Term Technical Outlook Gold’s immediate target is $2,745, the 2025 high set on January 21. A break above this level could push prices towards the all-time high of $2,790 recorded in October 2023. If these levels are surpassed, Fibonacci projections suggest key targets at $3,009, $3,123, and $3,288. On the downside, support lies at the December low of $2,582, followed by November’s low of $2,536. The 200-day moving average at $2,513 provides additional support, with deeper corrections potentially testing the September low at $2,471 and the July low at $2,353. Further weakness could see prices test the June low of $2,286 and the May low at $2,277. The ultimate downside target is $1,984, the February 2024 low, marking a substantial retracement from current levels. Gold remains a key focus for traders as political and economic events continue to influence price action.