XAU London Gold – Gold continues to rise as Trump renews tariff threats

Gold in London generally rose last week, but fell from its highs on Thursday. While the US dollar stabilized, investors also saw profit-taking. However, bond market turmoil has become a potential factor supporting gold. Separately, the U.S. House of Representatives passed President Trump's "tax cut bill" by a narrow margin of one vote. This will increase the federal government's debt by about $3.8 trillion over the next decade, according to the nonpartisan Congressional Budget Office. The current U.S. government debt is $36.2 trillion. There was little major economic data released last week, with fiscal and debt supply concerns becoming the main factors affecting market trends. However, by Friday, there was another big shock. U.S. President Trump said on Friday that he recommended a 50% tariff on EU goods from June 1, saying that the EU has been difficult to deal with on trade issues; Trump also said that Apple would pay a 25% tariff on iPhones sold in the United States but not made in the United States. This statement caused U.S. stock index futures to continue to fall, the dollar also hit a new low, and gold also rose above $3,360.

In terms of technical trends, the price of gold stabilized at around $3150 on May 16, and encountered resistance at $3250 in the morning and evening trading of last Monday. It barely held the $3200 mark in the early trading of Tuesday, and finally broke through $3250 after failing to break through many times in the New York session. After that, it has been rising repeatedly all the way. It encountered resistance at $3350 in the early trading of Thursday and fell sharply. It can be seen that during this period, the half-hundred and full-hundred mark can be regarded as an important positioning reference. The current focus is on $3350. The gold price initially broke through last Friday. If it can still stabilize here at the beginning of this week, it is expected to continue its upward trend; extending to $3380 and $3402. In addition, the two peaks in recent months were $3500 on April 22 and 3437 on May 7; the two bottoms were $2955 on April 7 and 3120 on May 15, indicating that the range of gold prices is narrowing. Therefore, if the gold price can break through $3,437 again, it will have the opportunity to trigger a new wave of upward trend. A more eye-catching target will now be the $3,500 mark. On the other hand, the key downside is the rising trend line support of $3140 and $3,120. The nearest support in the intraday market is estimated at 3283, which is another trend line position in the short-term chart; the larger support is seen at $3261 and $3250, and the next level reference is $3236.

London gold forecast range from May 26 to 30:
Resistance 3379 – 3436 – 3460 - 3482
Support 3350 – 3321 – 3298 - 3276

London Gold May 26
Predicted early range: 3342 – 3368
Resistance 3382 – 3396 – 3408
Support 3329 – 3318 – 3289

SPDR Gold Trust gold holdings:
May 12 – 939.09 tons
May 13 – 936.51 tons
May 14 – 936.51 tons
May 15 – 927.62 tons
May 16 – 918.73 tonnes
May 19 – 921.03 tons
May 20 – 921.60 tonnes
May 21 – 919.88 tonnes
May 22 – 923.89 tons
May 23 – 922.46 tons

23/5 AM London Gold Fix: $3330.1
23/5 PM London Gold Fix: $3342.65 
 

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