Gold prices were on a bearish move toward recent support, but President Trump’s recent moves have seen a rebound.
XAUUSD – Daily Chart
The XAUUSD has made a sharp move from below $3,300 and is moving to the resistance at the $3,431 level. A break above there could see another move higher.
Moscow has brushed off Donald Trump’s orders to move two nuclear submarines closer to Russia after hostile communications between both sides. Spokesperson Dmitry Peskov has dismissed the idea of an escalation, saying the submarines were already on combat duty.
The tensions have been increasing as U.S. envoy Steve Witkoff is set to visit Russia on Wednesday. The U.S. President has also increased the threat level on sanctions, with a deadline set for Friday to reach a ceasefire with Russia and Ukraine. Russian leader Vladimir Putin has said his country’s prime objective was to “eradicate the reasons for the crisis in Ukraine and ensure Russia’s security”.
There is a risk that Friday’s deadline will pass, and the U.S. will apply high tariffs on Russia. It has also threatened to hit China and India for buying Russian oil.
Last week’s sell-off in global markets is a warning ahead of the talks and the deadline. U.S. markets were reeling from a weak job market print, and with earnings season in full swing, a weak number from heavyweight tech firms like Palantir could bring further selling after a strong rally from the April lows.
Alongside ETF buying, the World Gold Council noted bullish figures in bullion in Q2. Including over-the-counter (OTC) investment, total demand rose 3% year on year between April and June, to 1,249 tonnes.
The Council added that “the themes that created such fertile ground for gold investment in Q1 remained very much in play during the second quarter”.
