On Tuesday (January 21), in the Asian market, spot gold suddenly rose rapidly due to Trump's tariff remarks stimulating risk aversion, and the gold price surged by $17 in the short term, currently breaking through the $2720/ounce mark.

On January 20th noon Eastern Time, Trump was sworn in as the 47th President of the United States in the circular hall of the Capitol Building.

US President Trump has recently stated that he plans to impose tariffs on Mexico and Canada no later than February 1st, with rates possibly as high as 25%, and reiterated his view that these two US neighbors are allowing illegal immigrants and drugs to enter the US.

Trump said, "We are considering imposing a 25% tariff on Mexico and Canada because they allow a large number of people to cross the border." When complaining about fentanyl and immigration crossing the northern border of the United States, Trump said Canada is "a very bad abuser," and stated that the target date for tariffs will be "I think February 1st.

Trump made the above remarks shortly after returning to the Oval Office to sign a series of executive orders. These administrative orders involve various aspects from regulation to energy and immigration.

This is an early sign of Trump's increased focus on trade since taking office. This statement has stimulated a rapid rise in market risk aversion, with not only gold strengthening, but also the safe haven currency, the US dollar, experiencing a significant increase.

It is expected that Trump's extensive trade tariffs will further stimulate inflation and trigger a trade war, which may increase the safe haven appeal of gold.

David Meger, the head of metal trading at High Ridge, said, "The uncertainty brought about by Trump's upcoming policies has always been one of the factors supporting gold

OANDA MarketPulse market analyst Zain Vawda believes that the uncertainty of Trump's tariffs and trade policies on the global economy and their potential impact on economic growth are expected to maintain safe haven demand for gold.

How to trade gold?

Analyst Christian Borjon Valencia pointed out that the gold price has broken through the $2700/ounce mark, but has not yet surpassed the high of $2725/ounce on December 12 last year. If we break through this high level, it will clear the way for buyers to test the psychological barrier of $2750 per ounce.

If these levels are broken, gold prices may move towards a record high of $2790 per ounce, followed by $2800 per ounce.

On the other hand, Valencia added that on the contrary, if sellers push gold prices below $2700 per ounce, the first support level will be the volatility low of $2656 per ounce on January 13th, followed by the 50 day simple moving average (SMA) and the 100 day SMA convergence area of $2642-2644 per ounce.