Gold Price Falls as Trump Delays EU Tariff
The price of gold falls to a fresh weekly low ($3288) as US President Donald Trump delays the 50% tariff for Europe until July 9.
Share this:
Gold Price Outlook: XAU/USD
The price of gold appears to be reversing ahead of the monthly high ($3435) as it extends the decline from the start of the week, but bullion may continue to track the positive slope in the 50-Day SMA ($3213) as it holds above the moving average.
Gold Price Falls as Trump Delays EU Tariff
The price of gold falls to a fresh weekly low ($3288) as US President Donald Trump delays the 50% tariff for Europe until July 9, and developments coming out of the US may continue to influence the precious metal as it offers an alternative to fiat currencies.
Join David Song for the Weekly Fundamental Market Outlook webinar.
David provides a market overview and takes questions in real-time. Register Here
In turn, the price of gold may continue to give back the advance from the monthly low ($3121) as the Trump administration avoids a trade war, but the precious metal may defend the bullish trend from earlier this year as the ongoing shift in US fiscal policy clouds the outlook for the global economy.
With that said, the recent weakness in the price of gold may turn out to be temporary should it continue to track the positive slope in the 50-Day SMA ($3213), but bullion may struggle to retain the rebound from the monthly low ($3121) if it closes below the moving average 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 gives back the advance from last week after struggling to push back above $3370 (161.8% Fibonacci extension), with a move/close below $3280 (100% Fibonacci extension) bringing the $3160 (161.8% Fibonacci extension) to $3190 (78.6% Fibonacci extension) region on the radar.
- Next area of interest comes in around the monthly low ($3121), but the price of gold may continue to reflect the bullish trend from earlier this year as it holds above the 50-Day SMA ($3213).
- Need a move/close above $3370 (161.8% Fibonacci extension) to bring the monthly high ($3435) on the radar, with a breach of the April high ($3500) opening up $3540 (161.8% Fibonacci extension).
Additional Market Outlooks
USD/JPY Approaches Monthly Low as Trump Plans 50% Tariff for Europe
Australian Dollar Forecast: AUD/USD Struggles Following RBA Rate Cut
Canadian Dollar Forecast: USD/CAD Bounces Back Ahead of Monthly Low
GBP/USD Rallies to Fresh Yearly High as UK CPI Shoots Higher
--- Written by David Song, Senior Strategist
Follow on X at @DavidJSong
Related tags:
Latest market news
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
Gold, silver outlook: Sandwiched between bullish bonds and AI angst
XAU/USD and XAG/USD may be approaching a bullish turning point as Treasury futures threaten a breakout. The problem? Both metals have recently been trading more like tech stocks than havens.
Gold Rallies Towards a $4k Test – but Can Bulls Break the Trend?
Gold prices melted down last week but so far this week, a different tone has taken over. But can this turn into anything more than a short squeeze?
Gold forecast: XAU/USD stabilised after recent falls – for now
Gold has started the first week of the new month trying to recover some ground after another bruising week. Oil prices have taken a sharp drop and that has allowed risk assets to bounce back, which has clearly helped the precious metal too. However, with sentiment remaining bearish towards the metals, and with $4000 level having been taken out last week, the path of least resistance is to the downside for gold.
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.