Gold Surges Amid Escalating Trade Tensions and Geopolitical Uncertainty
- Gold prices rose sharply as investors reacted to rising global uncertainties. This is the highest level gold has reached in the past three weeks.
- The rally was mainly driven by two major developments. First, trade tensions between the United States and China worsened. President Trump accused China of violating a recent tariff truce and announced a plan to double tariffs on steel and aluminum imports to 50%, starting June 4. The European Union is also considering countermeasures, increasing the risk of a larger trade conflict.
- Second, geopolitical tensions increased after a Ukrainian drone strike reportedly destroyed a large portion of Russia’s long-range bomber fleet. This action happened just before scheduled peace talks, which quickly ended without progress. The situation has added to concerns about prolonged conflict and global instability.
Technical View
- From a technical standpoint, gold has broken out of a two-month consolidation pattern. Prices had been forming lower highs—around $3,447 in early May and $3,358 in late May—creating a compression triangle.
- A move above the $3,358 level marks a clear breakout from that pattern. This signals a shift in momentum and opens the door for a possible move toward the next resistance at $3,441.90, which is the all-time record closing price. If that level is cleared, a retest of the $3,509 intraday high becomes more likely.
- Support remains around $3,300, which has acted as a solid base in recent weeks. As long as gold stays above that level, the technical outlook remains positive.
- Gold prices rose sharply as investors reacted to rising global uncertainties. This is the highest level gold has reached in the past three weeks.
- The rally was mainly driven by two major developments. First, trade tensions between the United States and China worsened. President Trump accused China of violating a recent tariff truce and announced a plan to double tariffs on steel and aluminum imports to 50%, starting June 4. The European Union is also considering countermeasures, increasing the risk of a larger trade conflict.
- Second, geopolitical tensions increased after a Ukrainian drone strike reportedly destroyed a large portion of Russia’s long-range bomber fleet. This action happened just before scheduled peace talks, which quickly ended without progress. The situation has added to concerns about prolonged conflict and global instability.
Technical View
- From a technical standpoint, gold has broken out of a two-month consolidation pattern. Prices had been forming lower highs—around $3,447 in early May and $3,358 in late May—creating a compression triangle.
- A move above the $3,358 level marks a clear breakout from that pattern. This signals a shift in momentum and opens the door for a possible move toward the next resistance at $3,441.90, which is the all-time record closing price. If that level is cleared, a retest of the $3,509 intraday high becomes more likely.
- Support remains around $3,300, which has acted as a solid base in recent weeks. As long as gold stays above that level, the technical outlook remains positive.
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GOLDFXCC™ Leading Educational platform—whether you're just starting or an experienced trader, access knowledge and insights to refine your skills and achieve more.
➤ Telegram: t.me/+OYfvKDvM0w81MTJk
♛ Website: bio.site/goldfxcc.com
➤ Telegram: t.me/+OYfvKDvM0w81MTJk
♛ Website: bio.site/goldfxcc.com
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.