Gold Price Coils as Trump Warns of China Violation
The price of gold seems to be coiling within the April range as it’s little changed from the start of the month.
Share this:
Gold Price Outlook: XAU/USD
The price of gold seems to be coiling within the April range as it’s little changed from the start of the month, but the range bound price action may turn out to be temporary should bullion continue to track the positive slope in the 50-Day SMA ($3228).
Gold Price Coils as Trump Warns of China Violation
The price of gold holds above the moving average as it defends the rebound from the weekly low ($3246), and the ongoing transition in US trade policy may keep the precious metal afloat as US President Donald Trump warns that ‘China, perhaps not surprisingly to some, has totally violated its agreement with us.’
Join David Song for the Weekly Fundamental Market Outlook webinar.
David provides a market overview and takes questions in real-time. Register Here
With that said, gold may attempt to retrace the decline from the May high ($3435) as it continues to offer an alternative to fiat currencies, but the range bound price action may persist should the precious metal close below 50-Day SMA ($3228) for the first time since January.
XAU/USD Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView
- The price of gold is little changed from the start of the month as it bounces back ahead of the 50-Day SMA ($3228), and bullion may continue to track the positive slope in the moving average amid the failed attempts to close below $3280 (100% Fibonacci extension).
- Need a break/close above $3370 (161.8% Fibonacci extension) to bring the monthly high ($3435) on the radar, with a breach above the April high ($3500) opening up $3540 (161.8% Fibonacci extension).
- At the same time, a close below $3280 (100% Fibonacci extension) may push the price of gold toward the $3160 (161.8% Fibonacci extension) to $3190 (78.6% Fibonacci extension) zone, with the next area of interest coming in around the $3120 (61.8% Fibonacci extension).
Additional Market Outlooks
EUR/USD Defends Rebound from Weekly Low to Hold Above 50-Day SMA
Australian Dollar Forecast: AUD/USD Halts Bearish Price Series
Canadian Dollar Forecast: USD/CAD Snaps Rebound from May Low
GBP/USD Holds Below February 2022 High for Now
--- Written by David Song, Senior Strategist
Follow on X at @DavidJSong
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
USD/CAD shooting star puts September surge on notice
USD/CAD has printed a clear bearish reversal pattern after an extraordinary September surge, but confirmation may depend heavily on how US Treasury yields react to Friday’s payrolls report.
USD/CHF Reverses as Swiss Franc Surges amid Bond Carnage
USD/CHF reverses from channel resistance as bond volatility surges and broad Swiss franc strength points to a possible carry-trade unwind.
Gold Price Forecast: XAU/USD Plunges 12.4% Toward Critical Support 10 1 2026
Softer inflation has revived expectations for a Fed pause, but Friday’s payrolls could put gold’s recovery prospects to the test.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.