Daily Price Outlook
Gold prices (XAU/USD) managed to bounce back after falling for two days and are now trading around $3,335.
However, the recent decline was mainly due to growing worries about the US-China trade conflict. US President Donald Trump mentioned that new tariffs on China could be introduced within the next two to three weeks.
This statement increased uncertainty in global trade, making markets more unstable — and gold was also affected by this volatility.
Gold Price Recovery Driven by Trade Tensions and US Tariff Speculation
The global market sentiment has turned cautious again as President Trump’s comments on Wednesday about potential new tariffs sparked concerns. He suggested that China could face higher tariffs unless trade talks with the US progress well.
This warning of escalating trade tensions has worried investors, driving them to buy gold as a safe-haven asset. The fear that additional tariffs could negatively affect economic growth has boosted gold demand, as it is considered a protective investment during periods of market uncertainty.
In addition, US Treasury Secretary Scott Bessent clarified that Trump’s comments don’t mean the US will reduce tariffs on China without conditions. The government is considering other factors, like non-tariff barriers and Chinese subsidies.
With no clear plan on what the US will do next about tariffs, markets are still uncertain. This uncertainty has led traders to buy gold for safety, pushing its prices up.
Swiss National Bank's Gold Holdings Boost Investor Confidence
Meanwhile, the Swiss National Bank (SNB) provided another boost to gold prices, reporting a significant gain from its gold holdings. The SNB’s first-quarter profit of 6.7 billion Swiss Francs, driven by its gold assets, highlights the continued strength of gold in global markets.
This performance shows that gold remains a strong asset during times of market uncertainty, encouraging more investors to turn to the precious metal.
Gold Prices Drop in Shanghai Market as Trade War Fears Resurface, but Strong Buying Interest Persists
Apart from this, the Shanghai gold futures market experienced the biggest one-day drop in gold prices since 2013. Chinese investors, who had been hopeful about a US-China trade deal, quickly started selling to take profits after Trump’s comments brought back fears of a long trade war.
Even though there was a sharp sell-off at first, signs of strong buying interest are still there. Many investors who missed the chance to buy gold at lower prices in April are now getting back in.
Therefore, the sharp drop in Shanghai gold futures triggered a brief sell-off, but strong buying interest emerged as investors, missing April's lower prices, returned to gold, supporting its price recovery.
GOLD (XAU/USD) – Technical Analysis
Gold is struggling to regain bullish momentum after its recent breakdown from the ascending channel. The price was rejected around the $3,345 level — now acting as short-term resistance — and remains below the 50-period SMA ($3,366), indicating that sellers are still in control.
A bearish setup is building below this structure, with a potential continuation toward the $3,290 support zone if $3,345 fails to break.
Recent price action shows lower highs and a rejection candle off the $3,345 resistance zone, forming a potential bearish flag. This aligns with the RSI reading of 45.67, which remains under pressure and confirms weakening upward momentum.
If sellers manage to push the price below $3,345, the next key level to watch will be $3,290, followed by $3,288. A close above $3,390 would invalidate the bearish setup and suggest a short-term reversal toward $3,411.
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