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Gold Price Jumps Towards $3,340 As Global Trade Tensions Rise and Safe-Haven Demand Increases

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  • July 11, 2025
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The prices of gold (XAU/USD) continued their three-day winning streak, rising to almost $3,340 levels due to renewed global trade tensions, which triggered safe-haven demand. The rise comes after U.S. President Donald Trump’s declaration of significant 35% tariffs against Canada and the potential to add 15–20% duties on other countries, including the EU, has shaken world risk sentiment. Market players are thus keeping a keen eye on the release of the U.S. Consumer Price Index (CPI) data in June, which may further drive the direction of gold prices, particularly considering that the metal has a good track record during inflationary times. KEY LOOKOUTS • President Trump’s action to impose a 35% tariff on Canada and potential additional tariffs on the EU may heighten global trade tensions, fueling safe-haven gold demand. • The U.S. Consumer Price Index (CPI) figure for June will be a key gold catalyst, as elevated inflation usually buoys precious metal prices. • Gold is approaching a critical resistance around $3,500; a convincing breakout above here would send prices into new realms, with subsequent targets at $3,550 and $3,600. • On the bearish side, monitor support at $3,245; a close below here might send prices lower to $3,200 and $3,121. Gold prices have risen to near $3,340 as investors buy safe-haven assets in response to rising global trade tensions. U.S. President Trump’s 35% tariffs declaration against Canada and the potential for further duties against the European Union have unsettled market sentiment, decreasing risk appetite for riskier assets. The geopolitical risk has made gold more attractive, particularly as investors watch for influential U.S. inflation data for June. As inflation worries still persist, the coming CPI report can decisively influence gold’s movement, perhaps solidifying its upward momentum if price pressures continue. Gold prices move towards $3,340 as new U.S. tariff threats drive safe-haven demand. The markets now focus on the next U.S. CPI data, which might further drive gold’s momentum. •  Gold continues its streak, increasing for the third straight day and getting close to $3,340. •  U.S. President Trump institutes 35% tariffs on Canada, triggering global trade tensions. •  More EU tariffs are anticipated, further adding to market uncertainty. •  Safe-haven demand surges as investors flee riskier assets. • Gold nears critical technical levels, with resistance at $3,500 and support at $3,245. • June U.S. CPI data is a prime impending trigger that will determine gold’s next move. •  RSI reflects sideways movement, while a breakout or breakdown may determine short-term direction. Gold prices have gained solid traction as investors respond to escalating global trade tensions fuelled by U.S. President Donald Trump’s most recent tariff actions. The imposition of 35% tariffs on imports from Canada, as well as threats of further tariffs on the European Union, has caused broad-based market anxiety. Consequently, demand for safe-haven assets such as gold has increased sharply, reflecting investor nervousness amid rising geopolitical and economic risks. XAU/USD DAILY PRICE CHART SOURCE: TradingView This ramp-up in gold demand is also fuelled by hopes for U.S. inflation, with markets looking intensely at the imminent publication of June’s Consumer Price Index (CPI) statistics. During periods of high inflation or economic turmoil, gold is historically considered a sure thing for safekeeping. The increasing fears surrounding disrupted global trade and possible domestic cost pressures are turning gold into a desirable option for investors looking for stability in a volatile world. TECHNICAL ANALYSIS Gold is hovering close to the 20-day Exponential Moving Average (EMA) of about $3,330, indicating possible stabilization following recent advances. That said, it is still below the top line of an Ascending Triangle pattern, with the main resistance at about the $3,500 level. A decisive move above this level would set the stage for new highs, but inability to hold above support around $3,245 could initiate a pullback to $3,200 or $3,121. The 14-day Relative Strength Index (RSI) is neutral, trading between 40 and 60, and this indicates the absence of strong short-term directional momentum. FORECAST If geopolitical tensions keep increasing and inflation persists, gold may breach the $3,500 psychological level. A breakout above this level, once confirmed, can trigger a healthy bullish move, possibly setting its sights on $3,550 and even $3,600 in the near future. Sustained demand for safe havens, combined with dovish central bank signals, would add strength to this upward move. Conversely, should trade tensions subside or future U.S. CPI figures indicate tempering inflation, gold can reverse recent gains. A fall below the important support level of $3,245 might unleash further losses towards $3,200 and $3,121. Even a more robust U.S. dollar or more hawkish Fed statements might exert downward pressure on gold prices.

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Commodities Gold

Gold Prices Rise as Fed Rate Cut Speculation Increases and Geopolitical Trade Uncertainty Drives Safe-Haven Demand

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  • July 1, 2025
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Gold prices are moving higher, reaching a three-day high of around $3,333 on increasing hopes of a Federal Reserve rate cut and increased geopolitical trade uncertainties. The US Dollar dipped to its lowest point since February 2022, as the downwardly pressured economic data, fears of a widening fiscal deficit, and Trump’s hawkish trade approach before the July 9 tariff expiration day weighed. Safe-haven interest in gold is also underpinned by political tensions and volatility around key US macroeconomic events during the week, such as the ISM Manufacturing PMI, JOLTS, and highly expected Nonfarm Payrolls report. KEY LOOKOUTS •  Markets are factoring in a 74% possibility of a Fed rate cut in September, with scope for easing as early as July, which continues to sustain gold prices. •  The USD has fallen to its lowest level since February 2022 on the back of growing fiscal worries and dovish expectations of monetary policy. •  Trump’s latest tariff threat on several nations may ignite safe-haven buying and push gold even higher. •  Major releases such as the ISM Manufacturing PMI, JOLTS, and Thursday’s Nonfarm Payrolls will be keenly observed for new direction in USD and gold price movements. Gold prices are still rising as investors react to increasing hopes of a Federal Reserve rate cut and rising global trade tensions. The weakening US Dollar, which has fallen to its lowest level since February 2022, reflects market concerns over the Fed’s potential policy easing and the deteriorating fiscal outlook. Adding to the safe-haven appeal of gold are uncertainties surrounding former President Trump’s aggressive tariff policies, with the July 9 deadline looming. Traders also look toward critical US economic reports this week—such as the ISM Manufacturing PMI, JOLTS, and Nonfarm Payrolls report—that may continue to impact gold’s near-term trend. Gold prices rise with Fed rate cut expectations and trade uncertainty supporting safe-haven demand. A softer US Dollar and threatened tariffs by Trump further bolster the bullish case. Traders now look to critical US data, including the NFP report, for additional guidance. • Gold prices increase for the second day in a row, hitting approximately $3,333 on the back of firm safe-haven demand. • Expectations of a potential Fed rate cut before September increase gold and push the US Dollar down. • The USD declines to its lowest level since February 2022 as a result of fiscal worries and poor economic data. • Trump’s fresh trade warnings prior to the July 9 deadline contribute to global uncertainty and underpin gold. • US Treasury Secretary hints at potential tariff increases from 11% to 50%, reinforcing market conservativeness. • Market participants are looking for important US macroeconomic releases such as ISM Manufacturing PMI, JOLTS, and NFP. • Technical resistance is around $3,350–$3,370 and major support is at $3,245–$3,200. Gold remains a focus for investors as world markets respond to a combination of economic and political events. Increasing bets the Federal Reserve will follow quickly with rate cuts in coming weeks have reduced the US Dollar, boosting the allure of gold as a non-yielding haven asset. In the meantime, recent indicators of shrinking consumer spending and worries about a growing federal deficit are putting further pressure on the central bank to step in, supporting the market’s dovish bias. XAU/USD DAILY PRICE CHART SOURCE: TradingView Geopolitical uncertainty is also playing a significant part in favoring gold. Former President Donald Trump has intensified his trade rhetoric, threatening higher tariffs on nations that don’t seal agreements before the July 9 deadline. Those threats and the prospect of rising trade tensions have contributed to investor wariness. As markets expect major US economic releases this week, gold is preferred by traders who want stability in the face of economic and policy-related uncertainties. TECHNICAL ANALYSIS Gold (XAU/USD) is depicting a consistent bullish inclination while it is trading close to a three-day high level of $3,333. The nearest resistance can be seen in the $3,324–$3,325 range, a breakout above which might pave the way for additional upsides towards the $3,350 and $3,370 levels. Long-term strength above these levels can push the price towards the psychological $3,400 level. On the downside, initial support comes at $3,300, followed by stronger support around $3,276 and $3,245. A fall below these levels may switch momentum back in the favor of the bears and reveal the $3,210–$3,200 zone. FORECAST Gold could pierce near-term resistance at the $3,325 level and target the next significant barrier at $3,350. A clear breach above this level could set the stage for the $3,370 area, and eventually, the psychological $3,400 threshold. Sustained dollar weakness, added assurance on Fed rate cut expectations, and growing worldwide trade tensions would more than likely drive further rises in gold prices. Conversely, inability to hold above the $3,300 support level may invite a bearish pullback, revealing the $3,276 and $3,245 levels. A break below these supports might speed up the fall towards the $3,210–$3,200 range. Further downside risk might emerge if future US macroeconomic indicators surprise to the upside, alleviating pressure on the Fed and bolstering the US Dollar, hence diminishing the safe-haven appeal of gold.

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Commodities Gold

Gold Price Floats Close to Weekly Lows Despite Increasing US Bond Yields and Trade Risk

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  • February 27, 2025
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Gold prices are under strain, trading close to a weekly low of less than $2,900 as increasing US Treasury bond yields strengthen the US Dollar. A minor USD rebound combined with a good equity market mood has dented demand for the safe-haven metal. Nonetheless, volatility regarding US President Donald Trump’s tariff strategy and persisting concerns about the ongoing trade war lends some support to XAU/USD. While in the meantime hopes for further Federal Reserve interest rate cuts based on indications that the US economy is slowing offer a cap to gold losses, market participants look to future US economic releases such as Q4 GDP, Durable Goods Orders, and the Fed’s favored measure of inflation, the PCE Price Index, for more market guidance. KEY LOOKOUTS • Higher US Treasury bond yields are favoring the US Dollar, putting downward pressure on gold prices and capping upside moves. • Doubts surrounding President Trump’s plans on tariffs, especially on imports from the EU, Mexico, and Canada, can affect safe-haven demand for gold. • Market expectations of more Fed rate cuts due to weakening US economic growth can act as a floor to gold, capping its downside. • Major releases such as Q4 GDP, Durable Goods Orders, and the PCE Price Index will provide new information about economic conditions and gold price action. Gold prices are still volatile as investors closely watch major economic and geopolitical events. The increasing US Treasury bond yields have supported the US Dollar, putting downward pressure on the precious metal. In the meantime, uncertainty regarding President Trump’s tariffs strategies, particularly possible levies on European goods, persists and continues to move markets. Regardless of these bearish elements, hopes for additional Federal Reserve rate cuts as evidenced by slowing US growth could offer some purchasing pressure support for gold. Further, near-term US economic data releases such as Q4 GDP, Durable Goods Orders, and the PCE Price Index will be instrumental in deciding the future direction for XAU/USD. Gold prices remain under pressure as rising US bond yields strengthen the US Dollar, weighing on the metal. Uncertainty over Trump’s tariff plans and expectations of Fed rate cuts may influence price movements. Key US economic data, including Q4 GDP and the PCE Price Index, will provide further direction. • XAU/USD trades below $2,900, pressured by rising US bond yields and a stronger US Dollar. • A US Treasury yield rally strengthens the USD, putting downward pressure on gold prices. • New tariffs on EU imports and Mexican and Canadian tariff delays instill market uncertainty, affecting gold demand. • Market speculation of additional Fed rate cuts in a slowing US economy can be bullish for gold. • Q4 GDP, Durable Goods Orders, and the PCE Price Index will be key drivers of short-term gold price action. • The key support is at $2,888, and a break below $2,860 could initiate further weakness down to $2,800. • A breakout above $2,920 may see selling pressure around $2,930, but persistent strength can drive gold up to $2,950-$2,955 resistance. Gold prices continue to be shaped by general economic and geopolitical conditions as investors weigh the effects of increasing US bond yields and trade tensions. The rising US Dollar, bolstered by a recovery in Treasury yields, continues to pressure the precious metal. But worries over President Trump’s tariff policies, including possible tariffs on European imports and ongoing trade tensions with Mexico and Canada, foster an environment of uncertainty. These geopolitical trends tend to propel safe-haven demand, making gold still a part of investors’ investment portfolios. Further Federal Reserve interest rate reductions, fueled by the indications of an economic growth slowdown, may also influence gold’s long-term attractiveness. GOLD Daily Price Chart Chart Source: TradingView Market participants are now keenly observing the significant US economic data releases that may further indicate the economic outlook. Data releases like Q4 GDP, Durable Goods Orders, and the PCE Price Index will assist in assessing the US economy’s strength and impact investor mood. Further guidance on the central bank’s future monetary policy may also be provided by speeches from Federal Reserve officials. Against these events, gold continues to be an asset of interest, with investors weighing its safe-haven attraction against changing macroeconomic fundamentals. TECHNICAL ANALYSIS Gold prices are immediately supported at the $2,888 level, with further downside risk to the $2,860-$2,855 area if bearish momentum continues. A break below this area would increase selling pressure, driving prices towards the $2,834 level and potentially the psychological $2,800 level. To the upside, resistance is found near the $2,920 level, with further selling pressure anticipated around the $2,930 area. A continued breakout above this barrier may set the stage for additional gains towards the $2,950-$2,955 resistance zone, which is the record high achieved earlier this week. The next direction will be closely monitored by traders through price action at these significant levels. FORECAST Gold prices might experience increased downward pressure in the near term on account of a rising US Dollar and an increase in Treasury bond yields. As the USD recovers from multi-month lows, investor psychology can be inclined towards riskier assets, decreasing demand for the safe-haven metal. Further, a bullish sentiment in equity markets and confusion over US tariff policies can be adding to short-term selling pressure. If bearish momentum grows, gold may test lower supports at $2,860, with further downside potential towards $2,834 or even $2,800. On the plus side, gold still has recovery potential if macroeconomic conditions become favorable to it. Rising hopes of cuts in Federal Reserve rates, underpinned by evidence of declining US economic growth, may raise gold demand since lower interest rates lower the opportunity cost of carrying non-yielding assets. Apart from that, geopolitical tensions in the form of trade uncertainties with regards to President Trump’s policy of tariffs might underpin safe-haven purchasing. If gold is able to overcome the $2,920 resistance level, it could gain more momentum towards the $2,950-$2,955 zone, with the possibility of testing new highs if positive sentiment continues to build.

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