Additionally, the EU committed to investing $600 billion in US sectors, including the military and energy sectors. This massive investment strengthens the US growth outlook and supports the US Dollar. A stronger dollar makes gold more expensive for foreign buyers, adding further downward pressure.
Although not all tariffs were lifted, the market sees this as a de-escalation of trade tensions. Investors may rotate into risk assets amid hopes for increased global trade and economic cooperation. The JOLTS job openings data, GDP, Core PCE price index, and nonfarm payrolls will be the key events of the week and will define the next move for gold and silver (XAG) prices.
Gold Technical Analysis
XAUUSD Daily Chart – Ascending Triangle Pattern
The daily chart for spot gold shows that the price has dropped from the $3,450 resistance area and is attempting to break below the ascending triangle pattern. Friday’s decline closed near the 50-day SMA, suggesting that further downside on Monday would be a bearish signal for the gold market.
However, the 100-day SMA offers key support at $3,250. A break below this level could trigger a sharper decline in gold prices. Despite the short-term weakness, the broader trend remains bullish, and this dip may present a buying opportunity for long-term investors.