Trump Eases Tariff Pressure, Gold Awaits Fed Signals

115
On May 26, U.S. President Donald Trump decided to extend the deadline for the 50% tariff on goods from the European Union until July 9. This move temporarily eased trade tensions and slightly reduced the demand for gold as a safe haven.

Gold is currently trading near a long-term descending trendline that has previously rejected three bullish attempts. After a strong recent rebound, the price is now pausing and risks retracing toward the support zone around 3,241.4 – a confluence area with both the EMA 34 and EMA 89.

If this support holds, gold may bounce back and attempt a breakout above the trendline, targeting the 3,439.5 level. However, if selling pressure continues to dominate, a deeper correction remains a real possibility.

This week, investors will closely watch the FOMC meeting minutes and the U.S. Consumer Confidence Index for May. These data releases are expected to shed light on the Federal Reserve’s outlook on inflation and interest rate policy, which could significantly impact the strength of the USD and gold prices.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.