Gold Soars to $3358 as Trade Tensions Explode

Gold gained momentum as trade tension escalated. It hit an intraday high of $3358 and is currently trading around $3345.

With exporting countries such as India experiencing financial losses and decreased competitiveness, while U.S. enterprises prepare for escalating costs, global worries about trade friction have been sparked by Donald Trump's doubling of tariffs on steel and aluminum to 50%. The move, lacking economic justification and contradicting environmental goals, is expected to disrupt supply chains, strain diplomatic ties, and increase business uncertainty amid potential retaliatory measures.

.Shifting Rate Hike Expectations

According to the CME Fed Watch tool, the chances of a rate pause on the June 18th, 2025 meeting have increased to 98.70% from 94.40% a week ago.

Technical Analysis: Key Levels and Trading Strategy
 
Gold prices are holding above short-term moving averages 34 EMA above 55 EMA and long-term moving averages (200 EMA) on the 4-hour chart. Immediate support is at $3330 and a break below this level will drag the yellow metal to $3300/$3270/$3245/$3230/$3200/$3165/$3135/$3100/$3000. The near-term resistance is at $3350 with potential price targets at $3365/$3378/$3400/$3415/$3465/$3500.

It is good to buy on dips around $3328-30 with a stop-loss at $3300 for a target price of $3385.