GOLD eyes more upside amid trade woes, technical breakout
Gold price prints monthly highs near $3,400 early Tuesday, then retreats.
The US Dollar comes up for air after Monday’s sell-off on renewed trade concerns.
Gold price breaks through the key resistance line on the daily chart amid bullish RSI.
Gold price is on a modest pullback from the monthly high of $3,392 reached in Tuesday’s early Asian trades. The focus is back on the US JOLTS Job Openings data while trade headlines will continue to remain the primary market driver.
Despite the latest retreat, Gold price will likely remain underpinned by renewed tensions over US President Trump’s latest tariff announcement and rekindling US-China trade rift.Ever since Trump announced on Friday that he would double import tariffs on steel and aluminium to 50% in a bid to “even further secure the steel industry in the United States (US)”, the US Dollar (USD) has been on the receiving end amid renewed fears over the economy and policies uncertainty.
Further, trade concerns intensified after Trump accused China of violating its agreement with the US to mutually roll back tariffs and holding back products essential to the industrial supply chain., in a post published on Truth Social on Friday.Moreover, Reuters reported on Monday that The Trump administration is reportedly working on delivering a final trade deal deadline set for this Wednesday.
However, early Tuesday, USD sellers seem to be taking a breather, limiting the Gold price upside. Traders could be covering their USD short positions, gearing for a slew of critical US employment data this week, with the JOLTS Job Openings Survey due later in the day.
Strong US jobs data could back the Fed’s prudent policy approach and aid the Greenback’s recovery, impeding the renewed Gold price uptrend toward record highs.That said, the daily technical setup for Gold price continues to indicate strong gains in the near term.
Daily technical analysis
Having firmly defended the 21-day SMA, Gold price stormed through the falling trendline resistance, then at $3,346, to finish Monday at $3,382.
At the moment, Gold price is struggling yet again with $3,377, the 23.6% Fibo level of the April record rally.
Buy players yearn for acceptance above the $3,400 threshold to resume the recent upswing toward the lifetime highs of $3,500.
Ahead of that, the May high of $3,439 must be scaled on a sustained basis.
The 14-day RSI points lower but holds comfortably above the midline, supporting bullish bias.
Conversely, the correction could gather steam on a decisive break below the falling trendline resistance-turned-support, now at $3,341.
The next support is seen at the confluence of the 21-day SMA and the 38.2% Fibo level near $3,300.
Gold sellers could then accelerate declines toward the 50% Fibo level near $3,232 where the 50-day SMA hangs around.
GOLD eyes more upside amid trade woes, technical breakout
Gold price is on a modest pullback from the monthly high of $3,392 reached in Tuesday’s early Asian trades. The focus is back on the US JOLTS Job Openings data while trade headlines will continue to remain the primary market driver.
Despite the latest retreat, Gold price will likely remain underpinned by renewed tensions over US President Trump’s latest tariff announcement and rekindling US-China trade rift.Ever since Trump announced on Friday that he would double import tariffs on steel and aluminium to 50% in a bid to “even further secure the steel industry in the United States (US)”, the US Dollar (USD) has been on the receiving end amid renewed fears over the economy and policies uncertainty.
Further, trade concerns intensified after Trump accused China of violating its agreement with the US to mutually roll back tariffs and holding back products essential to the industrial supply chain., in a post published on Truth Social on Friday.Moreover, Reuters reported on Monday that The Trump administration is reportedly working on delivering a final trade deal deadline set for this Wednesday.
However, early Tuesday, USD sellers seem to be taking a breather, limiting the Gold price upside. Traders could be covering their USD short positions, gearing for a slew of critical US employment data this week, with the JOLTS Job Openings Survey due later in the day.
Strong US jobs data could back the Fed’s prudent policy approach and aid the Greenback’s recovery, impeding the renewed Gold price uptrend toward record highs.That said, the daily technical setup for Gold price continues to indicate strong gains in the near term.
Daily technical analysis
Having firmly defended the 21-day SMA, Gold price stormed through the falling trendline resistance, then at $3,346, to finish Monday at $3,382.
At the moment, Gold price is struggling yet again with $3,377, the 23.6% Fibo level of the April record rally.
Buy players yearn for acceptance above the $3,400 threshold to resume the recent upswing toward the lifetime highs of $3,500.
Ahead of that, the May high of $3,439 must be scaled on a sustained basis.
The 14-day RSI points lower but holds comfortably above the midline, supporting bullish bias.
Conversely, the correction could gather steam on a decisive break below the falling trendline resistance-turned-support, now at $3,341.
The next support is seen at the confluence of the 21-day SMA and the 38.2% Fibo level near $3,300.
Gold sellers could then accelerate declines toward the 50% Fibo level near $3,232 where the 50-day SMA hangs around.
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