XAUUSD is testing the ascending channel's lower bound and support at 3300. The price holds above the Ichimoku cloud with higher swings, suggesting the potential for further gains. If XAUUSD rebounds from the 3300 support, the price could extend gains toward the resistance at 3400. Conversely, a break below 3300 could prompt a deeper retracement toward the following support at 3200.
Gold prices saw a modest rebound as traders bought into recent weakness. However, gains were limited by a temporary de-escalation in US-EU trade tensions. President Trump's decision to delay the proposed 50% tariffs on EU imports until Jul 9 has given markets room to reassess near-term risk, curbing safe-haven demand.
A stronger US dollar also weighed on gold. The greenback firmed after US consumer confidence surged in May, bouncing back from near a five-year low. This makes dollar-denominated gold more expensive for non-dollar buyers.
On the policy front, Minneapolis Fed President Neel Kashkari signaled a wait-and-see stance, advocating for steady rates until the inflationary effects of higher tariffs become clearer. This cautious tone adds uncertainty ahead of key data releases.
Traders now turn their attention to the Fed minutes and PCE inflation data for further cues on the Fed's rate trajectory as the potential catalysts for the next move in gold prices.
By Li Xing Gan, Financial Markets Strategist Consultant to Exness
Gold prices saw a modest rebound as traders bought into recent weakness. However, gains were limited by a temporary de-escalation in US-EU trade tensions. President Trump's decision to delay the proposed 50% tariffs on EU imports until Jul 9 has given markets room to reassess near-term risk, curbing safe-haven demand.
A stronger US dollar also weighed on gold. The greenback firmed after US consumer confidence surged in May, bouncing back from near a five-year low. This makes dollar-denominated gold more expensive for non-dollar buyers.
On the policy front, Minneapolis Fed President Neel Kashkari signaled a wait-and-see stance, advocating for steady rates until the inflationary effects of higher tariffs become clearer. This cautious tone adds uncertainty ahead of key data releases.
Traders now turn their attention to the Fed minutes and PCE inflation data for further cues on the Fed's rate trajectory as the potential catalysts for the next move in gold prices.
By Li Xing Gan, Financial Markets Strategist Consultant to Exness
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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.