Insights 
VT 
Key Points:
- Gold futures dipped 0.5% to $3,332.40 per ounce.
- Traders pivot to updates on U.S. trade negotiations with 17 partners (excluding China).
- Stronger U.S. dollar pressures bullion, curbing its short-term appeal.
- Long-term outlook remains supported by market instability, ETF inflows, and central bank buying.
Gold prices declined on Monday as investor demand for immediate safe-haven exposure eased in response to shifting geopolitical headlines. XAUUSD settled near $3,320, down roughly 0.5%, after touching an intraday high of $3,348.56.
The move comes amid renewed optimism around U.S. trade negotiations—this time not with China, but with 17 international partners. According to analysts at ING, the absence of China from the current negotiation slate may temporarily ease tensions and encourage risk appetite, leading to outflows from defensive assets like gold.
Adding pressure is the strengthening U.S. dollar, which makes gold more expensive for foreign buyers while enhancing the greenback’s role as a competing safe-haven instrument.
Technical Snapshot
Gold (XAUUSD) is under renewed pressure, with price slipping from the 3353.06 high toward the current level around 3320.40. The moving averages (5, 10, 30) have turned lower, confirming a short-term bearish crossover. Sellers remain in control for now, keeping price below the descending short-term MAs.
Picture: Gold extends losses below short-term averages as downside pressure lingers, as seen on the VT Markets app
The MACD momentum shows a widening negative histogram, though recent bars hint at slowing downside momentum. If buyers can defend the 3305.20 support region, a corrective bounce could follow. Otherwise, risks lean toward a deeper pullback toward the 3280–3265 zone.
Immediate bias remains bearish, but conditions are becoming slightly oversold on the 15m chart.
Long-Term Outlook
Despite the short-term pullback, gold remains up over 25% year-to-date, largely driven by volatile U.S. policy shifts, trade friction, and a fragile macroeconomic backdrop. ING notes that gold ETF inflows and central bank reserves accumulation continue to provide robust demand undercurrents.
Moreover, extended uncertainty around U.S.-China trade relations, combined with broader economic instability, is expected to reinforce gold’s value as a longer-term hedge.
