Gold prices have seen a notable increase following adjustments to US tariffs. After US President Donald Trump lifted tariffs on US imports from 10 per cent to 15 per cent, gold prices climbed 1 per cent, surpassing $US5160. Simultaneously, the Australian dollar reached a fresh three-year high, exceeding US71¢.
Marc Jocum, senior investment strategist at Global X, suggests ongoing tariffs and geopolitical volatility will likely extend into 2026, supporting continued demand and higher prices for gold. He also noted strong buying activity from central banks and a weakening US dollar are contributing factors. Global X ETFs is an exchange-traded fund (ETF) provider, offering a range of investment solutions. They empower investors to build sophisticated portfolios.
Despite the recent rally in gold prices, Jocum pointed out that institutional investor positioning remains subdued, with total net long positions at a two-year low. This indicates that current price increases are not primarily driven by institutional flows. However, renewed buying from traders, combined with potential US dollar weakness and falling real yields, could further propel gold prices.
Jocum anticipates that increased buying from traders could add upward pressure on gold, potentially establishing a technical support level around $US5000–$US5100. He suggests gold may be positioned to retest all-time highs later in the year, contingent on these factors.
