Gold Eyes $3,405 Again as Price Rebounds from $3,297 Support Line

Gold held near $3,316 on Monday as traders sat on their hands ahead of the US-China talks. The London meeting featuring key advisors...

Written by: Arslan Butt • Monday, June 9, 2025 • 1 min read

• Last updated: Monday, June 9, 2025

Quick overview

Gold prices hovered around $3,316 as traders await the outcome of US-China trade talks.
Analysts suggest that progress in negotiations could alleviate business uncertainty, even if tariffs remain.
Gold's safe-haven appeal is reinforced by China's central bank increasing its reserves for the seventh month in a row.
Technical indicators show that gold is under pressure from resistance levels, with key price points at $3,297 and $3,344.

Gold held near $3,316 on Monday as traders sat on their hands ahead of the US-China talks. The London meeting featuring key advisors to Trump and Chinese officials could impact global sentiment and relieve trade war tensions.

According to OANDA’s Kelvin Wong, traders are not committing to big longs until the outcome is clear. Even if tariffs remain, progress in talks could ease business uncertainty. Wong also pointed to rising US fiscal pressure and its inflationary effects which supports gold in times of volatility.

Meanwhile, strong US non-farm payrolls and wage growth has trimmed expectations for multiple rate cuts this year. Markets now see only one cut in October. US CPI is due out on Wednesday so investors are waiting for the next inflation print.

Gold’s safe-haven status remains intact with China’s central bank adding to its reserves for the 7th consecutive month – an underlying sign of long term demand from institutions.

Technical Setup: $3,297 Is The Line In The Sand

From a charting perspective, gold (XAU/USD) is trying to stabilize after falling from $3,405. Price bounced off $3,297 – a horizontal support that coincides with a long term ascending trendline from May’s lows.

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

But gold is under pressure from its 50 period EMA at $3,344 and 200 period EMA at $3,319, both acting as resistance on the 2 hour chart.

Key Technicals:

Ascending trendline support at $3,297
EMA crossover suggests short term weakness
Lower highs since $3,405

Until bulls close above $3,344, momentum is sideways to bearish.

Trade Scenarios: Bulls Need A Breakout

The next move depends on how price reacts to the 200 EMA zone. Traders should wait for a breakout or rejection before entering.

Bullish Setup: Entry above $3,320 with target at $3,375, stop at $3,295. Confirmation comes with a daily close above $3,344.
Bearish Setup: Entry below $3,295 targeting $3,271 and $3,246. Stop just above $3,322.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

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.