Gold Gains as Trade Uncertainty Boosts Safe-Haven Demand.
Gold prices edge higher as uncertainty surrounds U.S. trade negotiations
FUNDAMENTAL OVERVIEW:
Gold prices inched up during European trading on Monday, supported by safe-haven demand amid ongoing uncertainty surrounding upcoming U.S. tariff hikes.
A modest retreat in the U.S. dollar, following a two-week rally, also contributed to the gains, though gold continued to trade within its established $200 range since April.
Gold prices advanced after a Wall Street Journal report on Sunday revealed that the European Union was preparing retaliatory measures in response to U.S. President Donald Trump’s trade tariffs.
The move followed unexpected demands from U.S. officials for additional concessions in a potential trade agreement, including a proposed baseline tariff rate of 15%, which surprised EU negotiators.
The US Dollar remains under pressure despite a reduced likelihood of a Federal Reserve rate cut in September. According to the CME FedWatch tool, the probability of a rate cut has dropped to 58.5%, down from nearly 70% a month earlier. The tool also indicates that the Fed is expected to keep rates unchanged in next week’s policy meeting.
Traders have scaled back dovish Fed expectations following the release of June’s US Consumer Price Index (CPI), which reflected the early effects of sector-specific tariffs introduced by President Donald Trump.
GOLD TECHNICAL ANALYSIS CHART:
Technical Overview:
Gold is trading within a up channel.
Gold is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 3372.00
Immediate support level: 3342.23
HOW TO TRADE GOLD
Gold, after trending higher, has entered a consolidation phase, moving within a range. Currently, it is showing bullish momentum and trading toward a key resistance zone. If this level is breached and gold holds above it, the metal could advance further toward the next major resistance level.