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Both spot and futures gold prices for April hit incredible highs above $3,000 per troy ounce this week. The widely expected but still landmark achievement came as U.S. inflation cooled in the latest data sets, amid heightened tariff fears and further stock market's correction mood, which only gained momentum. Taking into account the listed take-off drivers, I personally feel that we could keep our eyes on a gradual expansion, probably limited by targets around $3,250, although price goals are unlikely to be higher within the near six months. A natural decrease in interest in precious metals can occur, as soon as money again will flow into properly discounted tech stocks.

A temporary return one step lower, let me call it $2,900+, cannot be completely ruled out either, being fully aware of how gold traders have been cautious, maintaining upward pressure but retreating time and again back, before ultimately going for a decisive upward surge. So, for short-term traders especially, I would not recommend placing stop-loss orders higher than $2,900, as their positions could simply be knocked down by any quasi-random rollback in prices. Yet, the path to the tops now looks cleared.

To clarify the inflation component, the U.S. CPI (consumer price index) rose by 0.2% only, instead of a supposed pace of 0.5%, according to February's metrics, which came out on March 12. This led to a lower-than-expected annual increase of 2.8%, down from 3.0% gain a month ago. This moderation in inflation was later confirmed by PPI (producer price index) data the next day. Again, the Federal Reserve's meeting is scheduled on March 19, and no rate cut decision is expected, but markets are currently pricing in two or three rate cuts before the end of the year, with the first borrowing cost decrease being commonly projected in June of July, according to the Fedwatch tool to show the dynamics in interest rate futures. Cooling inflation works in favour of lower interest rates rather sooner than later, which in turn weakens the U.S. Dollar's position against safe haven assets such as Gold and Bitcoin in the medium term.

Meanwhile, Gold outperformed overheated stocks on this stage of an overall uptrend in most assets, as growing business income is under question when more mutual restrictions are coming or under way from rivals and partners of the Trump-led United States. The first term of the sitting president has shown that tariff fears were only temporary obstacles that have been overcome repeatedly, but two major stock market pullbacks of 10% and 20% occurred in 2018, although the S&P 500 broad market index has grown by 62% overall from November 2016 until the start of the corona pandemic. Meanwhile, Gold climbed from $1,277 to $1,691, or 32.5%, over the same period.