June 3, 2025 – Gold Market Update
Gold prices rallied sharply on Monday, driven by renewed safe-haven demand amid escalating trade tensions between the U.S. and China and a major geopolitical flare-up in Eastern Europe. The bullish momentum pushed the precious metal to its highest level in three weeks, attracting strong interest across both futures and physical markets.
As of 3:30 PM ET, June 2025 gold futures settled at $3,377.50, marking a notable gain of $88.10 or 2.68%. Spot gold also followed suit, jumping by $90.62 or 2.75% to reach $3,379.45, highlighting widespread investor interest.
Gold Breaks Key Technical Resistance
From a technical standpoint, gold broke out of a multi-week triangle pattern, invalidating the series of lower highs that had formed since the April 22 intraday peak of $3,509. Key resistance from May 23 at $3,358 has been breached, setting the stage for a potential push toward the next major resistance level at $3,441.90 — the record closing high.
Support is now seen near the $3,300 zone, making it a critical level to watch in the event of any pullbacks.
Trade War Fears Trigger Market Volatility
The breakout in gold comes after President Trump reignited U.S.-China trade tensions, accusing Beijing of breaching the May 12 tariff truce. The agreement, initially framed as a 90-day pause, is under threat just weeks after implementation.
Trump announced plans to double tariffs on steel and aluminum to 50%, effective June 4. The European Union is reportedly preparing retaliatory measures, sparking broader concerns about a global trade war resurgence and economic fallout.
Geopolitical Tensions in Europe Add to Gold’s Appeal
Simultaneously, geopolitical concerns surged after Ukraine launched a successful drone attack on a Russian airbase, reportedly damaging or destroying up to 41 strategic bombers. Analysts warn that the strike could cripple Russia’s long-range aerial capabilities, posing serious implications for regional security and global diplomacy.
The incident occurred just before planned peace talks, which broke down within an hour — emphasizing the fragile state of international relations and increasing the likelihood of prolonged conflict.
Outlook: Gold Likely to Remain in Focus
The dual threat of global trade disruption and geopolitical instability continues to reinforce gold’s status as a safe-haven asset. With investors seeking protection amid economic and political uncertainty, gold is well-positioned to benefit from further deterioration in global stability.
As long as diplomatic tensions and tariff escalations remain unresolved, analysts expect gold prices to remain elevated, with bullish momentum building toward retesting the $3,441–$3,500 range in the near term.
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