4 June 2025,05:33
Daily Market Analysis
4 June 2025, 05:33
Key Takeaways:
*Gold prices faced downside pressure as the U.S. dollar strengthened in the last session.
*Geopolitical tensions, as well as U.S. tariff uncertainties, provide buoyancy for the safe-haven gold.
Gold faced downward pressure in the previous session, retreating to test the critical $3,333 support level as a resurgent U.S. dollar asserted its strength. The greenback’s gains followed robust U.S. employment data that reinforced confidence in the nation’s economic health, simultaneously boosting risk assets like equities and cryptocurrencies while drawing capital away from non-yielding safe havens.
Beneath the surface of dollar strength, several factors continue to underpin gold’s fundamental appeal. Renewed trade policy uncertainty stemming from proposed tariffs on steel and aluminum has reintroduced volatility into global markets, while escalating geopolitical tensions in both Europe and the Middle East maintain a bid for safe-haven assets. Notably, central banks appear to be maintaining their strategic accumulation of gold reserves, with this institutional demand helping to offset some of the pressure from dollar-focused traders. The gold futures market has shown particular resilience, suggesting professional investors view current levels as attractive for maintaining long-term positions.
The current price action places gold at an important technical inflection point. A firm hold above $3,333 would suggest the bull market remains intact, potentially setting the stage for another upward leg once dollar momentum fades. Conversely, a decisive breakdown could signal a deeper correction phase, though the wealth of supportive fundamental factors would likely limit any significant downside.
XAUUSD, H4
Gold prices faced a sharp rejection near the 3,392 resistance level, declining roughly 1.7% to 3,330 suggests the underlying bullish trend remains intact, with this retracement potentially representing a healthy consolidation rather than a trend reversal.
The momentum indicators reinforce this constructive outlook. The Relative Strength Index (RSI), while elevated, continues to trend upward and approaches overbought territory—a sign of persistent buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) has turned higher, confirming that bullish momentum is regaining strength following the recent pullback.
This price action indicates that the dip toward $3,330 may have attracted fresh buying interest from traders viewing this level as an opportunity to position for the next potential leg higher. The ability to defend this Fibonacci support level is particularly noteworthy, as it often serves as a critical zone where trend-following buyers re-enter the market.
Resistance levels: 3392.00, 3430.00
Support levels: 3354.00, 3323.00
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