Spot 
GOLD has rebounded strongly from yesterday's lows, currently trading around $3,333/oz. The main reason is that US President Trump announced a 25% tariff on Japan and South Korea starting August 1, which boosted safe-haven demand. However, the strengthening US Dollar has also limited the broader recovery in gold prices.
On Monday local time, US President Trump sent letters to 14 countries including Japan, South Korea and South Africa threatening to impose tariffs. He then signed an executive order to extend the suspension of "reciprocal tariffs" until August 1.
Trump announced that he would impose a 25% tariff on imports from Japan and South Korea, effective August 1. In a letter to the leaders of Japan and South Korea, Trump said the tariffs would be imposed on August 1 because the two countries' trade relationship with the United States is "very unfair".
This is his first letter to major trading partners ahead of the July 9 deadline to reach a trade deal.
Trump said that despite the large trade deficits between the United States and South Korea and Japan, the United States has decided to continue to cooperate with the two countries. However, the United States has decided to move forward on the premise of more balanced and fair trade. Trump said that the trade deficit has posed a major threat to the US economy and even national security, so changes are needed. Starting August 1, 2025, the United States will impose a 25% tariff on all products from South Korea and Japan, regardless of the different tariffs by industry.
Additionally, any attempt to circumvent tariffs by shipping through a third country will also be subject to higher tariffs.
Trump said companies that choose to build factories or manufacture products in the United States will not have to pay the tariffs. Additionally, if South Korea and Japan decide to increase tariffs on the United States, the United States will impose additional tariffs of the same size on top of the current 25% tariff.
Official data released by the People's Bank of China on Monday showed that China's central bank increased its gold reserves in June, marking the eighth consecutive month of increase.
Bank of America said that central banks around the world are buying gold to diversify their foreign exchange reserves, thereby reducing their dependence on the US dollar and protecting against inflation and economic instability, and the trend is expected to continue.
Technical Outlook AnalysisGOLD
On the daily chart, gold has recovered from a key technical confluence area, which is the closest support area to note for readers in the weekly publication. The area from $3,292 – $3,300 is the confluence of the 0.382% Fibonacci retracement with the lower edge of the long-term rising price channel. However, the temporary recovery is being limited by the EMA21, the current closest resistance, followed by the 0.236% Fibonacci retracement level.
The recovery momentum is significant, but for gold to have enough technical bullish conditions, it needs to take price action above the EMA21, with a bullish breakout of the 0.236% Fibonacci retracement level then the prospect of a new bullish cycle will be opened.
If gold breaks above the 0.236% Fibonacci retracement level it will have the next target at the raw price point of $3,400 followed by horizontal resistance at $3,430.
During the day, the current gold price should still be assessed as a sideways accumulation trend, when the Relative Strength Index RSI sticks around 50, showing the market's hesitant sentiment.
A strong enough fundamental impact to change the structure will give a more specific technical trend in the coming time, and the notable positions will be listed as follows.
Support: 3,300 - 3,292 USD
Resistance: 3,350 - 3,371 - 3,400 USD
SELL XAUUSD PRICE 3366 - 3364⚡️
↠↠ Stop Loss 3370
→Take Profit 1 3358
↨
→Take Profit 2 3352
BUY XAUUSD PRICE 3294 - 3296⚡️
↠↠ Stop Loss 3290
→Take Profit 1 3302
↨
→Take Profit 2 3308
GOLD has rebounded strongly from yesterday's lows, currently trading around $3,333/oz. The main reason is that US President Trump announced a 25% tariff on Japan and South Korea starting August 1, which boosted safe-haven demand. However, the strengthening US Dollar has also limited the broader recovery in gold prices.On Monday local time, US President Trump sent letters to 14 countries including Japan, South Korea and South Africa threatening to impose tariffs. He then signed an executive order to extend the suspension of "reciprocal tariffs" until August 1.
Trump announced that he would impose a 25% tariff on imports from Japan and South Korea, effective August 1. In a letter to the leaders of Japan and South Korea, Trump said the tariffs would be imposed on August 1 because the two countries' trade relationship with the United States is "very unfair".
This is his first letter to major trading partners ahead of the July 9 deadline to reach a trade deal.
Trump said that despite the large trade deficits between the United States and South Korea and Japan, the United States has decided to continue to cooperate with the two countries. However, the United States has decided to move forward on the premise of more balanced and fair trade. Trump said that the trade deficit has posed a major threat to the US economy and even national security, so changes are needed. Starting August 1, 2025, the United States will impose a 25% tariff on all products from South Korea and Japan, regardless of the different tariffs by industry.
Additionally, any attempt to circumvent tariffs by shipping through a third country will also be subject to higher tariffs.
Trump said companies that choose to build factories or manufacture products in the United States will not have to pay the tariffs. Additionally, if South Korea and Japan decide to increase tariffs on the United States, the United States will impose additional tariffs of the same size on top of the current 25% tariff.
Official data released by the People's Bank of China on Monday showed that China's central bank increased its gold reserves in June, marking the eighth consecutive month of increase.
Bank of America said that central banks around the world are buying gold to diversify their foreign exchange reserves, thereby reducing their dependence on the US dollar and protecting against inflation and economic instability, and the trend is expected to continue.
Technical Outlook Analysis
GOLD On the daily chart, gold has recovered from a key technical confluence area, which is the closest support area to note for readers in the weekly publication. The area from $3,292 – $3,300 is the confluence of the 0.382% Fibonacci retracement with the lower edge of the long-term rising price channel. However, the temporary recovery is being limited by the EMA21, the current closest resistance, followed by the 0.236% Fibonacci retracement level.
The recovery momentum is significant, but for gold to have enough technical bullish conditions, it needs to take price action above the EMA21, with a bullish breakout of the 0.236% Fibonacci retracement level then the prospect of a new bullish cycle will be opened.
If gold breaks above the 0.236% Fibonacci retracement level it will have the next target at the raw price point of $3,400 followed by horizontal resistance at $3,430.
During the day, the current gold price should still be assessed as a sideways accumulation trend, when the Relative Strength Index RSI sticks around 50, showing the market's hesitant sentiment.
A strong enough fundamental impact to change the structure will give a more specific technical trend in the coming time, and the notable positions will be listed as follows.
Support: 3,300 - 3,292 USD
Resistance: 3,350 - 3,371 - 3,400 USD
SELL XAUUSD PRICE 3366 - 3364⚡️
↠↠ Stop Loss 3370
→Take Profit 1 3358
↨
→Take Profit 2 3352
BUY XAUUSD PRICE 3294 - 3296⚡️
↠↠ Stop Loss 3290
→Take Profit 1 3302
↨
→Take Profit 2 3308
Note
🔴 Spot gold falls below $3,290 Spot gold touched $3,290 an ounce, down 0.35% on the day.
Trade closed: target reached
Plan BUY +40pips close a part move SL to entry.🔥Note
Note
▫️The US Dollar Index DXY briefly fell 10 points, currently at 97.54.
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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.
🔰| Forex trading
🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate
🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate
🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1
Related publications
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.