Gold (XAU/USD) Bounces After 1% Dip—Can Bulls Hit $3,370?

Gold fell over 1% on Monday as US-China trade tensions eased and investors felt better about the trade outlook. A stronger US dollar also put pressure on gold, with the dollar index (.DXY) up 0.3% making gold more expensive for international buyers.

Tim Waterer, chief market analyst at KCM Trade, said financial markets were “feeling a bit better” about the trade outlook than they were at the start of April. Optimism grew after the White House signalled they were open to rolling back tariffs, and fears of a prolonged trade war that could tip the global economy into recession.

US President Donald Trump said talks were ongoing, but China pushed back on any suggestion that formal negotiations were underway. Gold historically thrives in times of uncertainty and low interest rates – conditions that are slightly less favourable with improving risk sentiment.

Key Events Ahead Could Sway Gold Prices

Investors are now looking at a series of US economic reports this week that will set the tone for gold’s next move.

• Tuesday: US Job Openings (JOLTS) report

• Wednesday: Personal Consumption Expenditures (PCE) inflation data

• Friday: Non-farm payrolls report

These releases will give insight into the Fed’s monetary policy path. Weaker data will reinforce bets on lower interest rates which historically benefits gold by reducing the opportunity cost of holding non-yielding assets.

Meanwhile IMF and World Bank Spring Meetings showed ongoing tensions within the Trump administration’s trade agenda, adding a layer of caution for investors looking ahead.

Technical Outlook: Gold Eyes $3,370 Rebound

Gold (XAU/USD) is currently at $3,293, rebounding from the trendline support at $3,268. Although the price is just below the 50 EMA ($3,324), bulls are regaining some ground. Immediate resistance is at $3,370 and a break above this level could open up $3,431.

Trade Plan

• Buy breakout: Above $3,324

• Upside targets: $3,370 and $3,431

• Support to watch: $3,268

• Stop-loss: Below $3,268

Newbies this is a trendline defence – buyers stepping in at support. But be patient – need a breakout above $3,324 before entering to avoid whipsaws.