Gold Prices Surge to $3,260 as Trade Tensions Drive Demand for Safe-Haven Assets

On Monday, gold prices reached $3,260 per troy ounce as global uncertainty, particularly surrounding US-China trade negotiations, continues to fuel investor interest in safe-haven assets.

Trade Tensions and a Weaker Dollar Support Gold

Market sentiment remains cautious as US President Donald Trump hints at a potential deal with China without providing specific details. Beijing, on the other hand, has signaled a willingness to review US proposals for talks but insists on certain conditions being met first. This ongoing uncertainty is boosting demand for gold.

Additionally, the weakening US dollar is making gold more appealing to investors holding other currencies. All eyes are now on the upcoming Federal Reserve meeting, where interest rates are expected to remain unchanged despite calls from Trump for a rate cut.

Technical Analysis of XAU/USD

Technical analysis shows gold consolidating around $3,266 with a possible short-term decline to $3,165. If this level is reached, a correction back up to $3,266 could occur, followed by a potential drop to $3,033. Indicators like the MACD and Stochastic oscillator support this bearish outlook.

Conclusion

Gold prices are being supported by geopolitical uncertainty and a weakening dollar, with technical indicators suggesting a short-term downside before a possible rebound. Key levels to watch are $3,179 and $3,165 as near-term support, with a broader target at $3,033. The outcome of the Federal Reserve meeting could also impact price direction based on its stance on interest rates and the economic outlook.

Analysis by RoboForex Analytical Department

Disclaimer: Any forecasts in this analysis are the author’s opinion and should not be considered trading advice. RoboForex is not liable for trading results based on the information provided.