Gold is known as a safe haven, something investors buy during uncertain times. But in 2025, it’s not just reacting to fear. It’s moving with strong momentum, driven by news, global events, and investor behavior. Let’s break down what’s behind this recent surge.
Fundamentals: Why Gold Is Gaining Momentum
U.S.-China Trade Tensions Escalate
Gold found fresh support after China pushed back on accusations by U.S. President Trump that it violated a temporary trade agreement. The conflict has revived fears of a drawn-out trade war, hurting market hopes for a stable resolution.
Tariff Threats Spark Market Volatility
On Friday, Trump announced plans to double tariffs on steel and aluminum imports to 50%, effective Wednesday, June 4, 2025. This aggressive stance has rattled investors and pushed them toward safe-haven assets like gold.
Geopolitical Risks Rise
Over the weekend, Ukraine launched drone attacks deep inside Russian territory, adding to global instability and further fueling gold’s appeal as a geopolitical hedge.
U.S. Dollar Weakens Amid Risk-Off Sentiment
The dollar softened as traders sought refuge in alternative safe-haven currencies like the Japanese Yen, Swiss Franc, and Euro. A weaker dollar typically supports gold, which is priced in USD.
Technicals: Momentum Building at Key Resistance
Gold is showing solid intraday strength, with prices up approximately 1.95% at the time of writing.
• Gold is now testing a major resistance level near $3,365. This level has historically acted as a key barrier and a strong psychological level.
• RSI currently sits at 64.06 on the 4-hour timeframe, indicating moderate bullish momentum potentially aiming for overbought levels, leaving more space for further upside movement.
• Price is trading above the 20 and 5-day EMAs, a sign of short-term bullish control.
If gold breaks above $3,366 with high volume, we could potentially see a push toward the next resistance area around $3,392, continuing the current upward move, as per analyst analysis.
Figure 1: XAUUSD, H4 Time-frame, Trading View
Fundamentals: Why Gold Is Gaining Momentum
U.S.-China Trade Tensions Escalate
Gold found fresh support after China pushed back on accusations by U.S. President Trump that it violated a temporary trade agreement. The conflict has revived fears of a drawn-out trade war, hurting market hopes for a stable resolution.
Tariff Threats Spark Market Volatility
On Friday, Trump announced plans to double tariffs on steel and aluminum imports to 50%, effective Wednesday, June 4, 2025. This aggressive stance has rattled investors and pushed them toward safe-haven assets like gold.
Geopolitical Risks Rise
Over the weekend, Ukraine launched drone attacks deep inside Russian territory, adding to global instability and further fueling gold’s appeal as a geopolitical hedge.
U.S. Dollar Weakens Amid Risk-Off Sentiment
The dollar softened as traders sought refuge in alternative safe-haven currencies like the Japanese Yen, Swiss Franc, and Euro. A weaker dollar typically supports gold, which is priced in USD.
Technicals: Momentum Building at Key Resistance
Gold is showing solid intraday strength, with prices up approximately 1.95% at the time of writing.
• Gold is now testing a major resistance level near $3,365. This level has historically acted as a key barrier and a strong psychological level.
• RSI currently sits at 64.06 on the 4-hour timeframe, indicating moderate bullish momentum potentially aiming for overbought levels, leaving more space for further upside movement.
• Price is trading above the 20 and 5-day EMAs, a sign of short-term bullish control.
If gold breaks above $3,366 with high volume, we could potentially see a push toward the next resistance area around $3,392, continuing the current upward move, as per analyst analysis.
Figure 1: XAUUSD, H4 Time-frame, Trading View
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.
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.