Gold Price: Trade War & Bond Jitters Fuel Rally. Discover why gold prices are poised for a potential breakout as trade tensions and bond market volatility ignite safe-haven demand. The precious metal is attracting investors worried about persistent inflation, rising debt, and the impact of trade wars on the market. Key factors to watch include the ECB rate cut and the forthcoming U.S. jobs data, which are set to considerably influence gold’s bullish momentum. A decisive break above $3,320 could trigger a rally toward $3,400. News Directory 3 delivers timely insights. With global equities possibly facing headwinds, gold could significantly outperform. Curious about the next price levels?
Gold Price Eyes Breakout Amid Trade Tensions, ECB Cut
Updated June 02, 2025
gold prices are showing signs of a potential breakout as renewed trade tensions and bond market volatility fuel demand for safe-haven assets. After a relatively flat May, the precious metal is attracting investors amid concerns about trade wars, persistent inflation, and rising debt levels in major economies.
Uncertainty surrounding trade deals is back in focus, potentially driving fresh gains for gold. A continued sell-off in the U.S. and Japan bond markets could further boost the yellow metal’s appeal.
Global equities experienced their best month as November 2023 in May, driven by optimism about easing U.S. tariff threats. However, this relief may be short-lived as new tariff announcements and concerns about a massive tax and spending package in the U.S.create a more challenging surroundings.
Volatility could return to the market, positioning gold to outperform other assets.
The European Central Bank (ECB) is widely expected to cut rates by 0.25 percentage point on Thursday, a move anticipated for weeks.Markets will closely monitor ECB President Christine Lagarde’s comments for clues about future policy moves. The U.S.jobs report for April, due Friday, will also be a key factor influencing market sentiment and gold prices. Traders will be watching to see if trade war jitters are starting to seep into the labor market.
Gold’s consolidation in recent weeks has allowed momentum indicators to unwind from overbought conditions.The precious metal has largely held above key support levels and a bullish trendline in place since the start of the year.
A decisive move above the $3,320 resistance level could pave the way for a test of the next resistance at $3,360, with further targets at $3,400, $3,435, and the all-time high of $3,500. short-term support lies between $3,245 and $3,275, followed by the bullish trend line at $3,200 and the early April high at $3,167. A break below $3,120 woudl signal a bearish trend, potentially leading to a dip toward $3,000.
What’s next
Investors should monitor trade developments, bond market activity, and key economic data releases, including the ECB decision and the U.S.jobs report, to gauge the potential for further movements in gold prices.
