Gold Prices Surge as Trump Delays Tariffs on Europe
Donald Trump announced a 50% tariff on Europe but postponed it until July 9, 2025. This decision boosted teh Euro, British pound, and Australian dollar, while the US dollar continued its decline.
Gold has also gained strength against the US dollar. It’s now aiming for $3400 in the short term and $3500 in the near future. This week, the strategy is to buy gold when it retraces to specific levels.
Previously, we identified two key levels for potential long positions at $3261 and $3328, both of which were successful. We also shared a selling level in the 4h timeframe that resulted in a 470-pip move.
Now, let’s look at the key economic events this week and their impact on XAUUSD.
- Wednesday,May 28: FOMC Meeting Minutes
- thursday,May 29: Unemployment Claims & Prelim GDP Q/Q
- Friday,May 30: Index of Core PCE Prices m/m
Gold has already surpassed the $3200 level and is targeting $3435 and $3500. The trade idea would be invalidated if the price breaks below $3120 in the weekly timeframe.
Gold is showing bullish momentum in all lower time frames. The strongest buying level on the 4h timeframe is at $3260-3208. On the 1h timeframe, there’s an immediate buying opportunity at $3313-3291.
For this week, the best strategy is to look for buying opportunities in both lower and higher time frames. Selling is not recommended due to unfavorable risk-to-reward ratios.
Support Levels:
- $3260-3208 – 4h support, FVG, order block, VAL
- $3313-3291 – 1h bullish order block, FVG, POC, 0.618 Fib level
