Key Points:
- XAUUSD (Gold) closed at $2,921.09, recovering from an intraday low of $2,888.19.
- Trump’s tariff plans add to inflation risks, bolstering gold’s appeal while weak U.S. data reinforces Fed cut bets, with the next move expected in July.
- ETF inflows hit their highest level since 2022, signaling sustained investor demand.
- China’s gold imports via Hong Kong fell 44.8%, the lowest since April 2022.
XAUUSD Stabilizes After Brief Dip Below $2,900
Gold retreated to $2,888.19 before bouncing back above $2,920, as traders booked profits following last week’s rally.
However, demand remains firm, supported by Trump’s latest tariff announcements, including potential levies on copper, Canadian, and Mexican imports, which could drive inflation higher and keep gold in demand as a hedge.
Meanwhile, ETF inflows reached their highest level since 2022, reflecting strong safe-haven demand amid economic uncertainty.
Technical Outlook: Gold in Consolidation Mode
Picture: XAUUSD rebounds from $2,888.19, eyeing resistance at $2,930.17, as seen on the VT Markets app.
XAUUSD (Gold) declined 1.06%, closing at $2,921.09 after opening at $2,952.43. The session saw a sharp drop to $2,888.19 before rebounding, with resistance capped at $2,930.17.
The moving averages (MA 5,10,30) indicate recovery momentum following the steep decline, with short-term MAs crossing above the longer-term average. The MACD (12,26,9) shows a shift from strong bearish momentum to neutral, as the histogram turns mixed.
Key levels to watch include $2,888.19 as critical support and $2,930.17 as immediate resistance. A sustained move above resistance may confirm a bullish recovery, while a drop below support could signal further downside pressure.
Weak U.S. Data Reinforces Fed Cut Expectations
Soft U.S. economic data has strengthened expectations of two 25-bps Fed rate cuts this year, with the first anticipated in July. Lower interest rates improve gold’s appeal, keeping XAUUSD supported despite short-term corrections.
Market Outlook
XAUUSD remains supported by inflation risks, ETF demand, and Fed rate expectations. Traders will watch upcoming economic data and further trade policy developments for fresh market direction.
