Gold (XAU/USD) is trading in a narrow range as investors balance mixed economic signals. The recent delay in US-EU tariffs has eased some demand for gold, a traditional safe-haven asset.
However, worries about US fiscal policy, expected monetary easing, and ongoing geopolitical tensions continue to support gold prices. Technical charts reveal patterns that may guide future price movements.
Markets briefly steadied after US President Donald Trump postponed the planned 50% tariffs on the European Union until July 9.
This decision followed talks with EU President Ursula von der Leyen and was seen as a positive step, reducing immediate trade tensions and lowering gold’s safe-haven appeal.
Despite this relief, uncertainty persists. Trump’s trade policies remain unpredictable, and tensions with China continue to pressure markets. The risk of new trade conflicts keeps investors cautious, potentially increasing gold demand if disputes escalate.
Trump’s proposed “Big, Beautiful Bill” could add about $4 trillion to the US deficit over the next decade. This raises alarms about fiscal health, with the Congressional Budget Office warning about long-term debt risks. Meanwhile, expectations of a Federal Reserve interest rate cut have weakened the US dollar. A weaker dollar usually supports gold prices.
Geopolitical issues, including the Russia-Ukraine conflict and unrest in the Middle East, also bolster gold’s appeal. Key US economic data—such as FOMC minutes, Q1 GDP, and the PCE Price Index—are due later this week, and investors are likely to stay cautious until these reports provide clearer direction.
Gold’s 4-hour chart shows a symmetrical triangle pattern, indicating consolidation before a possible breakout. Prices are squeezing between converging trend lines, signaling an imminent decisive move.
Within this triangle, an inverted head and shoulders pattern formed near $3,120–$3,160, signaling a bullish reversal. The breakout above the neckline at $3,240 supported upward momentum.
Currently, gold is testing resistance around $3,330–$3,340. A strong close above this level could push prices toward previous highs near $3,420. If rejected, gold may pull back toward the lower trend line near $3,200.
Trading volume remains low, suggesting that investors await a major catalyst before taking new positions. A breakout with increased volume would confirm the next trend direction. Until then, gold is expected to stay within this triangular range.
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