Gold prices have experienced a notable pause in their recent upward momentum, stalling near the $3,400 level after a strong rally. Following last week’s impressive surge—driven in part by heightened demand for safe-haven assets amid escalating global trade tensions—gold (XAU/USD) declined to the $3,358 range as traders weighed the impact of new tariffs set to be enacted and the possibility of a Federal Reserve rate cut later this year.

Last week’s rally was the sharpest in two months, sparked by the announcement of sweeping tariffs on imports from several countries. This move spurred investors to seek safety in gold, traditionally seen as a hedge against political and economic uncertainty. Adding to gold’s support was weaker-than-expected US labor market data, which has raised expectations that the Fed could move toward an interest rate cut by September.

Technically, gold has tested critical resistance levels but is currently consolidating below $3,400. On the charts, prices rebounded sharply from support near $3,267 and overcame several short-term resistance zones. However, momentum has slowed, and gold is now finding support at the 100-day moving average, hovering around $3,270. For bulls, a sustained daily close above $3,300—and subsequently above $3,322 and $3,341—would be necessary to regain positive momentum.

Short-term risks for gold include potential further downside if prices fall decisively below the $3,270 support area, which could expose the metal to tests of deeper support at $3,243 and $3,200. Looking ahead, gold’s outlook remains positive over the medium term, underpinned by ongoing market volatility and anticipation of accommodating monetary policy. However, with mixed signals from both fundamentals and technicals, traders should remain alert to shifting economic headlines and central bank cues that could drive the next decisive move.