Gold has path to $4,000 if trade tensions escalate — Natixis

The gold market is showing heightened volatility, hovering around the $3,300 per ounce support level, as investors continue to react to geopolitical risks. According to Natixis, the precious metal still has room to climb, remaining one of the top safe-haven assets amid ongoing uncertainty.

Gold prices pulling back from their all-time highs near $3,500 per ounce came as no surprise after US President Donald Trump softened his tariff stance and signaled openness to negotiations with China, said Bernard Dahdah, an analyst at the investment bank.

While trade tensions have eased somewhat, the threat of renewed conflict remains. A potential escalation could push gold toward $4,000 per ounce, according to Dahdah.

Investors are closely watching US Treasury markets and money market funds, with a staggering $125 billion fleeing the latter, which is a clear sign of a lack of trust in US securities. As noted by Natixis analysts, this shift is fueling gold's appeal, solidifying its status as the traditional safe-haven asset.