Gold Slips Below $3,320—Trump Tariff Delay and Trendline Break Shake Bulls
Gold fell on Monday as investor demand for safe-haven assets dissipated following comments from US President Donald Trump.
Quick overview
- Gold prices fell as investor demand for safe-haven assets decreased following President Trump's comments on nearing trade deals.
- Technical indicators show a bearish shift for gold, with prices breaking below key support levels and moving averages.
- The next critical support level for gold is $3,275, which aligns with historical consolidation and Fibonacci retracement levels.
- Traders are advised to consider short positions near $3,311-$3,315, with specific targets and stop-loss levels outlined.
Gold fell on Monday as investor demand for safe-haven assets dissipated following comments from US President Donald Trump. The president said several new trade deals are near completion and that most countries will get tariff reprieves. That killed gold’s appeal and took XAU/USD below key levels.
Trump initially proposed a 10% base tariff in April, with some duties up to 50%. The initial deadline was July 9 but a new extension was granted and most tariffs will now be delayed until August 1. That shifted risk sentiment and traders are rotating out of defensive assets like gold into equities and risk-on trades.
Markets are now watching July 9 and August 1 for policy shocks. Until then, gold’s macro tailwinds will be limited.
Gold Technical Breakdown Signals Bearish Shift
From a technical standpoint, gold has clearly lost its short-term bullish structure. Price has broken below the trendline and the 50-period Simple Moving Average (SMA) on the 2-hour chart. The breakdown followed a failed push to $3,345 where a spinning top candle showed hesitation and then a large bearish engulfing candle – a classic reversal signal.
What’s worse is the three-bar bearish continuation pattern that followed. This included:
- A full-bodied red candle closing below the 50-SMA at $3,337
- A clean break below the $3,322 horizontal support
- A drop to the $3,297 zone which is now minor support
The trendline is now resistance and price is below the 50-SMA so gold is bearish for now.
Gold Watch $3,275 as Next Key Support
If price loses the $3,297 area all eyes will be on $3,275 which is a historic zone that aligns with a prior consolidation base and a Fibonacci retracement level.
The bullish sequence of higher lows has been broken and the momentum has clearly flipped. Unless gold gets back into the $3,322-$3,337 area, sellers will be in control.
Here’s the trade I’m watching:
- Entry: Short near $3,311-$3,315 on weak pullbacks
- Stop Loss: Above $3,345 (trendline + prior rejection zone)
- Target 1: $3,297
- Target 2: $3,275
- Risk/Reward: 1:2
This setup favors continuation unless a sharp bullish candle reclaims the broken trendline with volume.
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