Gold price analysis dipped on Monday, trading in the $2,640 range, as a stronger US Dollar exerted pressure on the precious metal. This drop comes despite ongoing geopolitical risks that support Gold’s safe-haven appeal. The decline followed remarks from Donald Trump regarding potential tariffs on the BRICS nations, which heightened market volatility.
Gold Price Analysis: Trump Targets BRICS Over Currency Plans
On Saturday, Donald Trump warned the BRICS nations of 100% tariffs if they proceed with replacing the US Dollar as a global reserve currency. This statement came as BRICS, including countries like Brazil, Russia, India, and China, explores using member currencies or developing a Gold-backed BRICS currency for trade.
Trump’s strong stance aims to maintain the Dollar’s dominance. However, his threats could impact global trade dynamics, increasing uncertainty among BRICS members.
Gold Price Analysis: Gold Weakens Amid Stronger US Dollar
Gold, which is priced in USD, often reacts inversely to Dollar strength. Trump’s comments bolstered the US Dollar, leading to Gold’s decline. Despite this, the potential for geopolitical fallout from these tensions provides ongoing support to Gold’s haven status.
Geopolitical Risk: Middle East Conflicts Add Instability to Gold Prices
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Gold price analysis remain underpinned by geopolitical risks, including escalating tensions in the Middle East. Despite a ceasefire, recent Israeli strikes in Gaza and Syria have intensified regional instability. These developments contribute to sustained safety-driven inflows into Gold.
European Political Risks Influence Markets
In Europe, political tensions in France are adding pressure. Prime Minister Michel Barnier faces a no-confidence vote as his government struggles with fiscal reforms, further boosting Gold’s appeal as a hedge against uncertainty.
Short-Term Market Outlook
Gold’s price action remains range-bound, with a downward bias visible in technical indicators. A decline below $2,605 could trigger further losses toward $2,530.
MACD Signals Further Downside
The MACD indicator on the 4-hour chart shows bearish momentum, suggesting the possibility of additional short-term price declines. Traders should watch for confirmation of these trends before positioning.
Conclusion
Gold prices are influenced by a mix of geopolitical risk and economic factors, including Trump’s aggressive stance on BRICS. While Dollar strength pressures Gold, persistent uncertainties offer counterbalance through haven demand.
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