Gold (XAU/USD) is regaining momentum after Monday’s rally, buoyed by broad-based U.S. dollar weakness and renewed concerns over global trade and U.S. fiscal stability. The precious metal has surged approximately $60 in recent sessions, signaling a continuation of its broader bullish trend.
Market sentiment soured following President Donald Trump’s announcement on Friday to double tariffs on steel and aluminum imports. In addition, tensions escalated after the U.S. accused China of violating existing agreements on critical minerals trade. These developments have amplified fears of slowing growth and rising inflation—conditions associated with stagflation—which are increasingly driving investors toward safe-haven assets like gold.
The situation is further compounded by concerns over a proposed tax cut bill that could significantly expand U.S. debt levels. This has intensified the “sell America” narrative in global markets, reinforcing bullish sentiment for gold.
XAU/USD Technical Outlook
Gold appears to have completed its recent correction and is now targeting key resistance levels:
Immediate resistance: $3,365 — a three-week high being tested as of Tuesday.
Next upside targets: $3,415 followed by May’s peak at $3,440.
Support levels: The nearest support lies at $3,345, with stronger support around $3,285.
With attention now turning to upcoming U.S. economic data—including the ISM Manufacturing PMI—and comments from Federal Reserve Chair Jerome Powell, the U.S. dollar’s next move could either reinforce or challenge gold’s uptrend.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
