Gold Price Eyes $3,414 as Safe-Haven Demand Grows Amid Trade and Job Worries

Gold prices rose on Wednesday as geopolitical and economic crosscurrents boosted safe-haven demand. Traders watched U.S.-China...

Written by: Arslan Butt • Wednesday, June 4, 2025 • 1 min read

• Last updated: Wednesday, June 4, 2025

Quick overview

Gold prices increased due to heightened safe-haven demand amid geopolitical tensions and economic uncertainties.
Traders are closely monitoring U.S.-China diplomatic relations, with hopes for a Biden-Xi call influencing market sentiment.
Recent labor data indicates a mixed job market, which, along with dovish Fed policies, supports bullish sentiment for gold.
Technically, gold is consolidating with potential upside targets of $3,393 and $3,414, while traders should watch for MACD signals.

Gold prices rose on Wednesday as geopolitical and economic crosscurrents boosted safe-haven demand. Traders watched U.S.-China diplomacy after Chinese Foreign Minister Wang Yi told U.S. officials to calm things down. Hopes for a Biden-Xi call later this week kept markets on edge.

Meanwhile, Washington not doubling down on steel and aluminum tariffs on the UK eased short-term trade fears but global concerns remain. The OECD warned global growth could slow faster than expected due to trade restrictions. For gold bulls, that’s good news.

Recent U.S. labor data showed a jump in job openings but a nine-month high in layoffs, so labor market weakness. Fed officials citing trade and growth risks kept their policy dovish, which is good for gold.

Gold Chart Setup: $3,393 in Sight

Gold (XAU/USD) is consolidating at $3,360 after bouncing from $3,271. The 2-hour chart shows a clear rising channel with price respecting the trendline and the 50-period EMA ($3,338) as support.

Technical highlights:

Trendline Support: Gold has printed higher lows since May 30.
EMA Cushion: The 50 EMA is holding, so there’s rebound potential.
Fibonacci Cluster: A bullish engulfing candle at $3,346 (38.2% Fib) suggests more upside.

If bulls hold the $3,332-$3,346 range, $3,393 is next. Above that, $3,414 and $3,437 are the targets. But the MACD has turned bearish—showing a crossover and weakening histogram bars, so we may see some consolidation.

GOLD Price Chart - Source: Tradingview — GOLD Price Chart – Source: Tradingview

Trade Strategy: Risk-Managed Bullish Setup

For traders, gold is a risk-defined opportunity:

Entry: Above $3,365 with confirmation
Target Range: $3,393-$3,414

Stop-Loss: Below $3,332Overall, macro and technical is gold’s friend. Watch the MACD and risk. As long as the trendline holds, bulls have more juice.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.