Gold short-term trade opportunities

Gold prices extended losses on Thursday from the previous session as easing trade tensions increased risk sentiment and weighed on demand for safe-haven assets. Spot gold prices fell to $3,358.18 per troy ounce today, down from 3,439.04 from the previous day’s high, despite a 1.05% monthly gain and a 42.47% increase year-over-year.

The news highlights ongoing trade negotiations involving the U.S., Japan, and the European Union. Following the recent trade agreement between the U.S. and Japan, two European diplomats indicated that the EU and the U.S. are nearing a trade deal as well. This potential agreement might involve a 15% baseline tariff on EU goods, with possible exemptions. Such developments could impact international trade dynamics and economic relations among these regions.

Gold is a safe-haven asset during times of economic uncertainties; gold also tends to do well in a low-interest rate environment.

U.S. President Donald Trump will visit the Federal Reserve on Thursday, the White House said, which could intensify tensions between the administration and the central bank.

Technical analysis perspective

Gold/US Dollar:

• Gold is trading inside a large symmetrical triangle on four hourly charts.

• Falling resistance line from 3,500 all-time high recorded in April 2025 is working as a key obstacle at 3,415 to 3,435.

• Prices may pullback to 3,377 to 3,382 before beginning a fresh move to lower to 3,310 – 3,285, a rising support from May 2025 low at 3,120.76.

GLD (SPDR Gold Trust) ETF:

• GLD rejected a horizontal resistance containing between 318 -316.

• Now heading to a rising support around 307 – 306.

• A strong and sustained break below 306 would target 302 with more downside potential to 300.