Gold Prices Surge Amid Renewed Tariff Concerns and Geopolitical Tensions

Gold prices jumped sharply in early Monday trading, opening with a gap higher as markets reacted to the intensifying war in Ukraine, fresh threats from former President Trump to double tariffs on steel and aluminum imports, and the victory of a Eurosceptic candidate in Poland’s presidential election.

These developments reignited safe-haven demand, pushing gold up nearly 1.8% from the session’s open.

Bulls are now testing a critical resistance at $3365 (May 23 high). A sustained break above this level would mark the end of the recent corrective phase ($3365–$3245) and significantly improve the near-term outlook, bringing $3400 (psychological level) and $3437 (May 7 lower high) into focus.

Daily technicals have flipped to a fully bullish configuration. The thick, rising Ichimoku cloud—previously containing multiple downside attempts—continues to provide a solid base. The divergence between the Tenkan-sen and Kijun-sen lines following a bullish crossover, along with the break above the triangle’s upper boundary at $3343, further reinforces the bullish tone.

Despite the strong uptrend, a short-term correction is possible due to overbought hourly indicators. However, any dips are expected to be shallow given the prevailing bullish momentum.

Initial support lies at the broken triangle’s upper trendline, followed by the $3330/20 area—both key zones to watch for dip-buying interest and to maintain the strength of the current uptrend.

Res: 3358; 3365; 3400; 3414
Sup: 3343; 3330; 3322; 3311