Gold Price Climbs Ahead of Key U.S. Economic Reports Amid Trade Tensions

Gold prices edge higher as investors turn to safe-haven assets in anticipation of major U.S. economic data releases and persistent uncertainty surrounding U.S.-China trade negotiations. As of the latest session, June 2025 gold futures rose by $24.60 (+0.74%), settling at $3,354.80 per ounce, recovering from an earlier dip to $3,278 during the Asia session.

Economic Uncertainty Drives Bullish Momentum in Gold

Gold’s rebound reflects growing caution in global markets, with investors bracing for crucial U.S. economic indicators this week, including:

• The first estimate of Q1 GDP growth
• Personal Consumption Expenditures (PCE) inflation data
• April’s nonfarm payrolls report

These reports are widely expected to influence the Federal Reserve’s monetary policy outlook, with any signs of economic slowdown or sticky inflation likely to boost gold prices further.

Geopolitical Tensions and Tariff Risks Support Gold Demand

Market sentiment remains fragile due to uncertain U.S.-China trade dynamics. While President Donald Trump has claimed “genuine progress” in trade discussions, China has denied the existence of any current negotiations, casting doubt on the White House’s statements. U.S. Treasury Secretary Scott Bessent’s inability to verify the President’s claims has only deepened market skepticism.

Investors are also pricing in inflationary risks tied to tariffs, as higher import costs could feed into consumer prices, prompting a possible rise in safe-haven gold demand.

Gold Price Outlook: Strong Technical Support Holds

From a technical perspective, gold continues to hold firm above the $3,300 level, establishing a solid base following last week’s rally that saw futures briefly surpass the $3,500 record high. This zone now acts as a critical support level, with today’s intraday high near $3,363.80 setting the next target for bullish traders.

With continued volatility stemming from political and economic developments, gold remains a top choice for portfolio diversification, especially as inflation fears and policy uncertainty mount.

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Why Gold Prices Could Rise Further – Analysis by DailyForex.pk

• Weaker U.S. Dollar: Ongoing trade tensions and Fed rate uncertainty keep pressure on the greenback.
• Inflation Expectations: Import tariffs and rising costs continue to fuel inflation fears, boosting demand for gold.
• Geopolitical Risks: Contradictory messaging from the U.S. and China increases investor anxiety.
• Safe-Haven Appeal: Gold continues to serve as a reliable hedge amid market instability.

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