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Gold prices have pulled back slightly after recently testing multi-week highs. This movement comes as investors react to global trade headlines, central bank commentary, and upcoming economic data. The uncertainty around US-China relations and US interest rate expectations is creating both caution and opportunity for gold traders. The precious metal remains sensitive to geopolitical developments and monetary policy signals.

Gold Remains in Focus amid US-China Trade Disputes and Federal Reserve Policy Uncertainty

Gold continues to serve as a favored hedge against market uncertainty. Ongoing trade tensions between the United States and China remain a key driver of sentiment, with President Trump’s recent demand for trade proposals by Wednesday adding to the pressure. Speculation around a possible call with Chinese President Xi Jinping introduces the potential for either easing tensions or escalating them further. If negotiations falter, gold is likely to benefit as investors shift toward safe-haven assets.

Further inflaming the situation, Trump accused China of violating the Geneva trade agreement signed on May 12. China’s slow response regarding rare earth exports has added fuel to the fire. A breakdown in trade relations could weigh on global growth, which supports gold prices due to its status as a safe-haven asset.

Domestically, the focus is also on the Federal Reserve. Fed officials including Chicago Fed President Austin Goolsbee and Governor Lisa Cook will provide key commentary during the US session. Investors are looking for signals about when the Fed may start cutting rates again. According to the CME FedWatch Tool, there’s now a 57% probability of a rate cut in September. The market expects the Fed to hold rates steady in June and July. Microsoft’s decision to lay off more than 300 employees adds another layer of concern ahead of the Nonfarm Payrolls (NFP) report on Friday. Slowing job growth would deepen uncertainty and could drive further demand for gold.

Technical Analysis: Gold’s Broadening Wedge Breakout Reinforces Long-Term Uptrend

The chart below shows that gold is trading within a clear ascending channel. This indicates a long-term bullish trend. Price has mostly respected the upper and lower bounds of this channel since late 2024. Each dip toward the lower boundary has seen a strong rebound, suggesting persistent buying interest.

In recent weeks, gold formed a descending broadening wedge, a bullish pattern that often appears in uptrends. This wedge has widened, indicating growing volatility, but price action remains constructive. The pattern broke to the upside, signaling a potential continuation of the prior trend.

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Support is holding near the $3,200–$3,250 zone. That area coincides with the lower trend line of both the wedge and the ascending channel. Bulls defended that level multiple times, as shown by the long wicks and bounce attempts.

The most recent pullback saw gold dip from the $3,400 level to around $3,350. Despite this decline, the structure remains bullish as long as gold holds above the $3,300 zone. A break below that could test $3,200 again, but strong buyers may emerge there. On the upside, a clean move above $3,400 could open the door to new highs toward $3,600. Ideally, confirmation from volume and momentum would strengthen the breakout. However, the price structure alone supports a cautiously bullish outlook as long as the trend channel remains intact.

Profitable Gold Trade Executed with Defined Entry and Exit Levels

The chart below shows a successful short-term gold trade that was executed based on a well-defined technical setup, with clear entry, stop loss, and target levels that resulted in a profitable outcome. The trade was entered at $3,176 after the price confirmed a bottom near the expected reversal date. A stop loss was initially placed below the low but later raised to $3,242 to protect profits as the trade moved favorably. The target was set at $3,372, which was eventually hit, resulting in a total gain of $196 per ounce. The chart clearly shows the entry point, the upward movement, and the exit level, validating the effectiveness of the timing and risk management strategy. This trade was shared with subscribers via WhatsApp, offering a real-time, actionable opportunity that delivered a defined and measurable profit.

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Conclusion

Gold remains resilient despite recent price fluctuations. Trade tensions, Fed policy signals, and labor market uncertainty continue to shape sentiment. The technical setup supports a bullish outlook as long as key support levels hold. Investors are watching closely for clarity from US-China talks and upcoming economic data. In this environment, gold continues to attract demand as a safe-haven asset. 

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