Gold Hovers Near $3,350 Ahead of U.S. Inflation Data
Gold price hovers near $3,350 following U.S. economic data release.
FUNDAMENTAL OVERVIEW:
Gold prices are losing traction, sliding back toward the $3,340 per troy ounce level, signalling a volatile start to the week. Renewed trade tensions are supporting the metal, but investor caution persists ahead of Tuesday’s U.S. inflation data and the continued strength of the U.S. Dollar.
Escalating concerns over a broader global trade war, fueled by U.S. President Donald Trump’s latest tariff threats, drove gold prices to a three-week high of $3,374 during Monday’s early trading hours.
Asian markets reacted sharply to Trump’s weekend announcement of a 30% tariff on imports from the European Union and Mexico starting in August, following tariff notices sent to roughly 20 other countries the previous week.
Gold initially surged on safe-haven demand, but gains were capped as selling pressure emerged after markets absorbed calming remarks from European Commission President Ursula von der.
From a technical standpoint, sustained strength above the $3,365–$3,366 zone could act as a fresh catalyst for XAU/USD bulls, supported by positive signals on the hourly and daily oscillators. This breakout may pave the way for further gains, potentially allowing gold to retest the $3,400 mark. Continued buying momentum could then push the price toward the next key resistance around the $3,434–$3,435 level.
GOLD TECHNICAL ANALYSIS CHART:
Technical Overview:
Gold is trading within an up channel.
Gold is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Negative trend.
Immediate Resistance level: 3365.00
Immediate support level: 3341.40
HOW TO TRADE GOLD
Gold’s Price Action: A Potential Reversal
Gold initially rose but was rejected at a previous high, leading to a decline. However, it then found support and rebounded. Currently, Gold has broken above its major trendline and is now retesting that trendline and a significant support level. If Gold can hold this level, it’s likely to resume its upward trend.