Gold pulls back nearly -1.4% today amid rising Wall Street indices and a strengthening U.S. dollar (USDIDX), which is gaining over 0.4% despite a 4 basis point decline in 10-year U.S. Treasury yields to 4.46%. Risk appetite is being fueled by easing trade tensions between the United States and Europe, after Donald Trump postponed the implementation of a 50% tariff from June 1 to July 9, giving European partners more time to negotiate trade deals.
The market will also be closely watching tomorrow’s Q1 2025 earnings report from Nvidia, which will be released after the U.S. session. Nvidia has already announced that it will begin production of its next-generation Blackwell chips targeted at the Chinese market, following investor concerns that the company may face revenue losses in China due to export restrictions on GPU units. Looking ahead, if Nvidia delivers strong results and upbeat guidance that alleviate investor concerns, we may see a continued rebound in the Nasdaq—which could put pressure on gold sentiment.
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From a technical perspective, gold is retreating toward key support represented by the upper boundary of a descending price channel. If the price manages to bounce upward from the 200-hour EMA, a new bullish impulse is possible, which would also confirm a bullish flag pattern. Conversely, if selling pressure persists, we may see a test of the $3,100 level, which marks the lower boundary of the price channel.
Source: xStation5
