Trade Analysis & Reviews: 02.06.2025 - XAU/USD. Analysis and...

02.06.2025 06:38 PM

XAU/USD. Analysis and Forecast

The intraday rise in gold prices remains steady today, Monday, with gold reaching over a one-week high around $3359. The weakness of the U.S. dollar, driven by concerns over the deteriorating fiscal situation in the United States and expectations of further Federal Reserve rate cuts in 2025, is creating favorable conditions for the safe-haven yellow metal.

Additional support comes from ongoing uncertainty in trade relations and heightened geopolitical tensions, which are reducing risk appetite and fueling investment inflows into gold. This is evident from the sluggish performance in stock markets.

From a technical perspective, momentum beyond $3325, entering the supply zone starting at $3340, can be seen as a new trigger for bulls. The movement could extend further, enabling a return to the psychological $3400 level.

On the other hand, weakness below the $3300 round figure will find support at $3280. Further declines could be viewed as buying opportunities, but would be limited around the $3260 level. If the price falls below this level, the precious metal could become vulnerable to a sharper decline toward the $3200 round figure.

However, as long as the oscillators on the daily chart remain in positive territory, gold is likely to hold its higher levels.

For better trading opportunities today, attention should be given to the release of the U.S. ISM Manufacturing PMI, which could provide additional momentum for gold. Today's speech by Jerome Powell will also influence dollar movements, contributing to increased volatility in the precious metal.

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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Fundamental analysis