Gold Slides Further on US-China Trade Progress and Stronger Dollar

Key Takeaways:

• US and China officials set to hold key trade talks in London

• Risk appetite improves following renewed diplomatic efforts

• Strong US jobs report lifts dollar, reducing demand for gold

• Gold under pressure as safe-haven demand eases

Market Summary:

Gold prices extended their decline as investor sentiment improved following news that top US and Chinese officials will meet in London to ease ongoing trade tensions. The U.S. delegation—led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. 

The easing geopolitical uncertainty has lifted risk appetite across markets, reducing safe-haven demand for gold. Adding to golds bearish tone, the U.S. dollar rebounded strongly after the latest Nonfarm Payrolls (NFP) data surprised to the upside. While the U.S. economy added 139K jobs in May—slightly below forecasts—the details painted a stronger picture. Average hourly earnings rose by 0.4% (vs 0.3% expected), and while the unemployment rate ticked up to 4.0%, the overall tone of the report supported optimism on the U.S. economy.

The improved outlook for the dollar weighed heavily on gold prices, which tend to move inversely to the greenback.

Technical Analysis

GOLD, H4:

Gold prices are trading lower, continuing its downtrend after a firm breakout below the key support level at 3325.00. Bearish momentum remains intact and could lead prices lower toward the next support zone at 3290.00.

However, the MACD indicates diminishing downside momentum, and the RSI is hovering near 37—suggesting that gold may soon enter oversold territory. If bearish pressure fades, a corrective rebound toward the resistance level at 3325.00 is possible.

Resistance levels: 3325.00, 3345.00

Support levels: 3290.00, 3260.00