- Gold prices remain high amidst US-China trade talks, indicating market uncertainty
- Technical analysis shows gold breaking a bear flag, suggesting a potential rally to $3400/oz.
- Short-term, a break above 3333.60 on the two-hour chart could further fuel the upward momentum.
Read More: Markets Today: Asian Stocks Mixed, UK Unemployment Rises to 4.6%, FTSE 100 Eyes ATH
Gold prices continue to hold the high ground as a host of commodities benefit from US-China talks which have entered their second day in the UK. Markets appear cautiously optimistic regarding the talks and this appears to have stemmed the flow toward haven assets.
However, the fact that Gold continues to inch higher suggests that there remains concerns in some quarters. A brief US Dollar rally yesterday led to a brief pullback before Gold continued its grind higher.
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US-China Trade Talks Crucial for Golds Next Move
The US-China trade talks in Lancaster, UK have entered their second day. US Commerce Secretary Lutnick stated that he expects talks to continue throughout Tuesday and that they are going well.
Any positive developments from the talks could provide headwinds for Gold prices while a stalemate in talks is likely to renew the precious metals appeal.
Technical Analysis – Gold (XAU/USD)
From a technical analysis standpoint, gold has broken the bear flag pattern on the daily timeframe and has now completed a potential retest of the breakout.
A sign of the next rally to the upside?
While such a trading pattern is usually seen as bullish, the macro economic factors at play may be something to consider. If positive news comes from US-China talks, this setup could fail very quickly as the price of gold may fall.
If it does not though. Then a run toward the $3400/oz level and beyond starts to look like a real possibility.
Gold (XAU/USD) Daily Chart, June 10, 2025
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Source: TradingView (click to enlarge)
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Dropping down to a two-hour timeframe and you can see that markets are eyeing a change in structure.
A two-hour candle close above the 3333.60 swing high is needed to confirm. If such a move does come to fruition, bulls may be emboldened to push prices higher.
The only concern would be that following a higher high, market participants may conduct some profit taking and a new lower high may form before the bulls push gold prices higher.
Interesting times for gold with volatility expected in the coming days.
Gold (XAU/USD) H2 Chart, June 10, 2025
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Source: TradingView (click to enlarge)
Support
- 3333.58
- 3300
- 3275
Resistance
- 3350
- 3375
- 3400
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