#XAUUSD Targets New Highs Amid Renewed Tariff Threats

Gold price hits a two-month high of $2,750, driven by rising haven demand after US President Donald Trump's latest tariff threats against China. 

Market Drivers Behind the Gold Rally

1. Trump’s Tariff Threats
- President Trump proposed a 10% tariff on China, citing fentanyl concerns, effective February 1.
- Additional threats of tariffs on the European Union intensified market fears, boosting demand for gold as a safe haven.

2. Risk-Aversion Sentiment
- A sell-off in Chinese equities and warnings from Chinese Vice Premier Ding Xuexiang on the damaging effects of trade wars further heightened market anxiety.
- Investors flocked to safe assets, lifting both gold and the US Dollar.

3. Potential Policy Offsets
- Trump's announcement of a $500 billion investment in AI infrastructure, through a joint venture with OpenAI, SoftBank, and Oracle, could ease risk sentiment slightly.
- However, this optimism may be short-lived given ongoing trade tensions.
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