Silver to $39.50: Up 9.4% Past 30 Days
Gold retreated from the $3,400 resistance level after President Trump reported a productive phone call with China’s Xi Jinping discussing their trade deal, which eased tensions and reduced safe-haven demand. However, prices remain above key $3,350 support as multiple bullish factors persist.
The European Central Bank cut rates 25 basis points as expected, while U.S. labor data continued weakening with jobless claims rising above expectations. Friday’s jobs report is forecast to show hiring slowing to 130,000 from 177,000, potentially increasing Fed rate cut expectations that would support gold by reducing opportunity costs.
Despite the positive Trump-Xi call, trade tensions remain high with Trump’s steel/aluminum tariffs doubled to 50%, prompting Canada, Mexico, and the EU to threaten retaliation. Canada called the tariffs “illegal” while Mexico’s president deemed them “unjust and unsustainable.”
Technically, gold failed to sustain momentum above $3,350 after breaking triangle resistance but remains in a bullish setup. Key support lies at the 20-day moving average near $3,292, while a move back above $3,400 could target the April all-time high of $3,500.
