The secret behind the surge in gold prices
💡Message Strategy
(June 2) Gold prices soared nearly 3% as U.S. President Trump's tariff threats intensified trade tensions, stimulating investors' demand for safe-haven assets, and the U.S. dollar plummeted.
The dollar index fell nearly 0.8% on Monday. The sharp drop in the dollar makes dollar-denominated gold cheaper for holders of other currencies.
US President Trump said last Friday that from June 4, the tariff on US imported steel and aluminum will be raised from the current 25% to 50%. British Reuters said that this has once again disrupted international trade.
A spokesman for the European Commission expressed strong regret over the US announcement that it would increase tariffs and said that the EU is ready to implement countermeasures. The Canadian industry also expressed strong opposition, emphasizing that disrupting the cross-border supply chain of steel and aluminum will cause huge losses to both Canada and the United States.
📊Technical aspects
On the daily chart, gold rebounded from a two-week low and hit a four-week high this week, with a strong short-term trend.
For gold's lower support, focus on the breakout position of $3,350 in the U.S. session on Monday, which is also near the high point of gold last week, and the low point of $3,345 after the gold price rose in the European session on Monday;
For gold's upper pressure, focus on the integer position of $3,400 and the upper track of the daily Bollinger band near $3,410. For further strength, focus on the high of gold in May at $3,438.
The 5-day moving average and the MACD indicator re-formed a golden cross, and the KDJ and RSI indicators formed a golden cross downward. The short-term technical aspect shows that after the adjustment of gold, the bears began to gain an advantage.
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Short Position：3385-3375,3395-3410
