IN THE THICK OF FRESH TARIFF THREATS, TRADE TENSION RESURRECTS BY USA

Gold remains elevated above $3,350 during Monday’s Asian trading session, as the metal benefits from increased demand for safe-haven assets. Investors flocked to gold after U.S. President Donald Trump escalated the global trade tensions by announcing a new round of tariffs.

 

FROM A TECHNICAL STANDPOINT

o  A sustained move above the $3,340-$3,342 resistance zones would confirm a breakout above the 100-period Simple Moving Average (SMA) on the 4-hour chart. G

o  Combined with mildly positive oscillators on the same chart, this could open the door for further upward movement, potentially pushing gold prices toward the next key resistance around $3,360-$3,362.

o  If the momentum continues, the XAU/USD pair could target the $3,400 level.

o  On the downside, a dip below the immediate support at $3,326 could prompt buying interest, limiting the downside to near the $3,300 psychological level. 

o  Below that, the $3,283-$3,282 region, which aligns with the one-week low from Tuesday, comes into play. 

o  "A decisive break below this level would expose the XAU/USD pair to a deeper decline, with the next target being the July swing low near the $3,248-$3,247 zone."

After threatening to impose 30% tariffs on the European Union and Mexico starting August 1, President Trump indicated he was willing to engage in discussions on the issue. Meanwhile, Japan is reportedly working to arrange high-level talks with the U.S. this Friday.

 

WHAT THIS MEANS FOR GOLD

As U.S. President Donald Trump issued new warnings to several key trading partners, heightening fears of a broader global trade conflict, the metal continues to benefit from safe-haven demand following a sharp escalation in trade tension.

At the same time, expectations for an immediate interest rate cut by the Federal Reserve have diminished. This shift is driven by concerns that elevated tariffs could fuel inflation, alongside a still-strong U.S. labor market.