XAUUSD (SELL) Weekly IdeaGold 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.
