**Gold Price Movement** Gold (XAU/USD) is currently trading between $3,340 and $3,370. This movement comes as the US considers a 30% tariff on imports from the EU and Mexico starting August 1. These trade threats have increased Gold’s demand, with the price hovering around $3,350 and finding it hard to break the $3,370 barrier. US President Donald Trump recently sent letters to leaders in Europe and Mexico, raising concerns about new tariffs. This geopolitical tension further supports Gold as a safe haven. Economic data being released on Tuesday might also influence Gold prices. The US inflation data will be especially important as it evaluates the impact of these tariffs. Gold has broken out of a triangle pattern on the daily chart, signaling a shift in momentum. Surpassing $3,340 shows a rise in bullish interest, with resistance set at around $3,371. If Gold can maintain a price above this resistance level, it could aim for $3,400, and potentially reach the June high of $3,452. On the other hand, if it falls below $3,327, it may revisit support near $3,300. **Gold and Dollar Dynamics** The Relative Strength Index (RSI) is nearly at 56, suggesting a bullish outlook with potential for further price increases. The US Dollar’s behavior, guided by monetary policy, is crucial for Gold’s price trends. In summary, Gold’s price is strongly influenced by fluctuations in the US Dollar amid tariff discussions, and upcoming US inflation data will likely impact market movements. With spot prices approaching the $3,370 mark, Gold is in a tug-of-war between rising demand due to trade concerns and the resistance level it needs to overcome. The current range of $3,340 to $3,370 indicates strong interest from buyers, but this hasn’t yet translated into decisive upward movement. The level at $3,371 remains significant, and a daily close above this point is needed for further growth. Trump’s recent communication with European and Mexican leaders adds a layer of tension across the financial markets. This situation boosts safe-haven buying, with Gold attracting investment during unstable political times. Historically, such trends have been consistent during trade disputes, and it seems Gold is following this pattern. The upcoming US inflation numbers are crucial as they will influence pricing expectations. If consumer prices exceed predictions, it may lead to speculation about interest rate changes, which typically affects the Dollar negatively. The Dollar’s recent performance has been unstable due to policy announcements, creating ripples in the metals market. A weaker Dollar could support Gold’s rise, especially now that the technical signals favor the bulls after the recent breakout. From a chart perspective, the breakout from the triangle pattern is a positive indicator of increasing buying interest. The rise above $3,340 shows a change in market direction, but we need to keep an eye on $3,371. Price action around this level will determine if Gold can make a push towards $3,400 or if sellers will regain control. If Gold fails to hold above $3,327, it would raise short-term concerns with $3,300 acting as immediate support. Momentum indicators suggest continued growth is possible. The RSI near 56 shows no overbought signals, implying that buying pressure is solid but controlled, suggesting further upside potential if the right conditions arise. We are closely watching short-term inflation reports and any new tariffs introduced by Washington. Adjustments in these measures could lead to increased volatility since Gold has been responsive to such developments in the past. Derivatives trading should be informed by the recent technical breakout while preparing for possible pullbacks at support levels. Watch trading volumes near resistance points for signs of confidence. When trading either way, stay cautious of news risks—current market conditions are influenced more by policy changes than by fundamental economic data. Create your live VT Markets account and start trading now.

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