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.
Written by
David Song
Strategist
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.
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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
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