Gold markets began the week with small gains supported by the persistent US-China trade tensions and increasing geopolitical risks. The precious metal traded above $3,300, with near-term resistance at $3,350, as investors consider safe-haven investments in an environment of rising tariffs, geopolitical uncertainty, and disappointing monetary expectations.
US-China Trade Talks in Focus
The high-level trade talks between the US and China will happen in London on Monday and are garnering market attention. Washington is still imposing 50% tariffs on steel and aluminum imports, and global leaders including Mexico, Canada, and the EU have also resisted these measures. The outcome of the meetings could have a major impact on gold and US dollar prices.
Geopolitical Risk Boosts Safe-Haven Appeal
Beyond trade, military tensions between Ukraine and Russia over the weekend have added to gold’s safe-haven allure. With retaliation threats from Mexico and the EU also in play, the metal remains supported despite some headwinds from Friday’s strong US Nonfarm Payrolls (NFP) report.
Technical Outlook
Gold failed to break the resistance zone of $3,339–$3,392 last week and has since retreated to test the 23.6% Fibonacci retracement at $3,291, which now serves as a crucial pivot. A daily close below $3,291 could open the door to further declines toward $3,250 and possibly $3,057—the 50% retracement level.
On the upside, reclaiming the $3,339–$3,392 range would signal renewed bullish momentum and potentially target the $3,500 mark.
Conclusion
A complicated combination of trade discussions, risks around geopolitics, and technical data will still be the most important factors in guiding gold prices. Safe haven, while good for short-term support, will not likely add anything new to the price. Gold prices are currently waiting for developments surrounding the US-China trade talks, and certain inflation data midweek.
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