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Gold Daily | Spot Gold Drops Amid Dollar Rebound, US-China Trade Tensions Keep Support Intact
Generated by AI AgentAinvest Market Brief
Tuesday, Jun 3, 2025 8:01 am ET1min read
【Latest Gold Price and Recent Trends】
On Tuesday, spot gold fell 0.78% to $3,355 after hitting a high since May 8. The price drop follows a slight rebound in the dollar, though trade uncertainties between the US and China continue to support gold. Recent tariffs announced by US President Donald Trump are fueling trade tensions, creating a cautious market environment.
【Technical Analysis】
Gold has solid support at the 21-day SMA and broke previous resistance at $3,346, closing at $3,382. Currently, it faces resistance at $3,377, the 23.6% Fibonacci retracement of April's rally. Buyers aim for $3,400 to revive the uptrend toward the record $3,500. However, sustained breakout above May's high of $3,439 is needed first. The 14-day RSI remains above midline, indicating bullish bias. If prices fall below $3,341, the decline may intensify with support around $3,300, close to the 38.2% Fibonacci retracement.
【Market Sentiment and Economic Background】
Market sentiment is cautious due to US-China trade tensions and Trump's tariff hikes from 25% to 50% on steel and aluminum, effective June 4. Additionally, traders await US employment data, including JOLTS job openings. If employment data exceeds expectations, it may bolster the dollar and hinder gold's rise. The dollar rebound has pressured gold, as investors prepare for key US jobs data. The EU opposes the US's increased tariffs, suggesting possible retaliatory measures.
【Analyst Opinions】
Singapore's GoldSilver Central's Brian Lan notes the inverse correlation between gold and the dollar. Valeria Bednarik suggests gold consolidation around $3,370 aims for higher targets amid trade fears. Peter Grant from Zaner Metals highlights geopolitical risks due to Trump's tariffs and the Russia-Ukraine conflict, spurring safe-haven demand. Fawad Razaqzada points to fiscal uncertainty and trade wars as favorable conditions for gold outlook. Christian Borjon Valencia sees bullish momentum if gold surpasses $3,400, with resistance at $3,438 and $3,500.
On Tuesday, spot gold fell 0.78% to $3,355 after hitting a high since May 8. The price drop follows a slight rebound in the dollar, though trade uncertainties between the US and China continue to support gold. Recent tariffs announced by US President Donald Trump are fueling trade tensions, creating a cautious market environment.
【Technical Analysis】
Gold has solid support at the 21-day SMA and broke previous resistance at $3,346, closing at $3,382. Currently, it faces resistance at $3,377, the 23.6% Fibonacci retracement of April's rally. Buyers aim for $3,400 to revive the uptrend toward the record $3,500. However, sustained breakout above May's high of $3,439 is needed first. The 14-day RSI remains above midline, indicating bullish bias. If prices fall below $3,341, the decline may intensify with support around $3,300, close to the 38.2% Fibonacci retracement.
【Market Sentiment and Economic Background】
Market sentiment is cautious due to US-China trade tensions and Trump's tariff hikes from 25% to 50% on steel and aluminum, effective June 4. Additionally, traders await US employment data, including JOLTS job openings. If employment data exceeds expectations, it may bolster the dollar and hinder gold's rise. The dollar rebound has pressured gold, as investors prepare for key US jobs data. The EU opposes the US's increased tariffs, suggesting possible retaliatory measures.
【Analyst Opinions】
Singapore's GoldSilver Central's Brian Lan notes the inverse correlation between gold and the dollar. Valeria Bednarik suggests gold consolidation around $3,370 aims for higher targets amid trade fears. Peter Grant from Zaner Metals highlights geopolitical risks due to Trump's tariffs and the Russia-Ukraine conflict, spurring safe-haven demand. Fawad Razaqzada points to fiscal uncertainty and trade wars as favorable conditions for gold outlook. Christian Borjon Valencia sees bullish momentum if gold surpasses $3,400, with resistance at $3,438 and $3,500.
Ainvest Market Brief
Market Watch column provides a thorough analysis of stock market fluctuations and expert ratings.
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