- Gold has gained momentum, marking its second consecutive day of rising prices.
- There’s a growing unease among investors regarding the outcomes of US-China discussions.
- XAU/USD might encounter resistance at $3,340 and $3,370.
I guess it’s interesting to note that gold (XAU/USD) saw some moderate gains on Tuesday during the European trading session, inching toward resistance at $3,340. This movement coincides with a wave of optimism about the US-China talks.
There seems to be, well, some fading enthusiasm following upbeat remarks from President Trump and other US officials about the negotiations. The talks are now in their second day, and I think that’s led to a more cautious outlook. Investors are shifting away from the dollar as trade progress remains elusive, prompting them to seek out safe-haven assets like gold, which has contributed to rising profits.
People are starting to pull back on long positions in the US dollar, especially with the current lack of substantial progress in trade talks between these two powerhouse economies. The UK has managed only modest achievements so far, while the July 9 deadline is creeping closer.
Technical Analysis: XAU/USD’s bearish trend is losing steam
The wider trend for gold is still negative, but it seems like there are fewer corrections in precious metals since the meeting on May 15. However, the daily chart is showing some bullish activity that started around $3,290. This could actually push past what was previously seen as support, with the new resistance level being around $3,340.
Analysts using Elliott Wave think the pair has confirmed the end of the bull cycle and has experienced a three-wave correction. Right now, we’re possibly on the AB legs. There’s even a chance this trend might expand to the resistance line at $3,370 before heading lower.
On the downside, support was established at $3,290 from June 9, alongside highs recorded on May 15 and 19, with additional support seen around $3,245 from May 29.
XAU/USD 4-hour chart
Today’s US Dollar Price
The following table illustrates the exchange rate of the US dollar (USD) against various listed currencies. Currently, the US dollar stands strong against the British pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | 0.34% | 0.01% | -0.00% | 0.05% | 0.00% | -0.06% | |
| EUR | -0.00% | 0.35% | 0.00% | 0.03% | 0.07% | 0.00% | -0.04% | |
| GBP | -0.34% | -0.35% | -0.41% | -0.33% | -0.28% | -0.35% | -0.38% | |
| JPY | -0.01% | 0.00% | 0.41% | 0.00% | -0.01% | -0.10% | -0.16% | |
| CAD | 0.00% | -0.03% | 0.33% | -0.00% | 0.03% | -0.02% | -0.06% | |
| AUD | -0.05% | -0.07% | 0.28% | 0.00% | -0.03% | -0.04% | -0.12% | |
| NZD | 0.00% | -0.00% | 0.35% | 0.10% | 0.02% | 0.04% | -0.04% | |
| CHF | 0.06% | 0.04% | 0.38% | 0.16% | 0.06% | 0.12% | 0.04% |
This heatmap reflects how major currencies are performing against each other. The base currency is listed on the left, while the target currency is along the top row. For instance, if you select US dollars from the left column and then move to Japanese Yen along the top, the figure shows you USD against JPY.
