Gold retests key support levels as easing trade tensions weigh on safe-haven demand

Gold remains in the red for a second straight session, once again testing the key $3300/$3292 support zone (psychological level / 38.2% Fibonacci retracement of the $2956–$3500 rally), where previous attempts to break lower have failed.

Sentiment has shifted as signs of easing tensions in the US-China trade conflict emerge, though confirmation of a concrete path toward a final deal is still lacking.

The broader outlook remains uncertain. On one hand, concerns persist over the long-term economic damage from the tariff war, which continues to support safe-haven flows. On the other, optimism over a potential resolution could erode gold’s appeal as a hedge, keeping the market in limbo.

These opposing forces suggest that gold may remain in a period of extended consolidation until a clearer directional catalyst emerges.

Key triggers remain in focus: a sustained break below $3300/$3292 would generate a strong initial bearish signal, with confirmation coming on a move below $3228 (50% retracement / 20DMA).

Conversely, a break above the 10DMA ($3337) would ease immediate downside pressure, while sustained gains above $3371 and $3400 (recent range tops / broken 23.6% Fib / psychological level) would signal the end of the corrective phase and the potential formation of a higher base.

Markets now turn to key US economic releases this week—GDP, PCE, and NFP—for further direction.

Res: 3292; 3300; 3328; 3336
Sup: 3260; 3245; 3228; 3200