On analysis of the gold futures in different time charts, I find that the gold futures are currently facing stiff resistance at 9 DMA at $3339 as I mentioned in mylast article due to surging concerns after a ruling of the Court of International Trade, opposing sweeping trade tariffs against major global economies by President Trump but this Thursday he expressed hope that the Supreme Court will reverse this decision.
However, any such delay in the implementation of this ruling might extend uncertainty in the strength of the US dollar and gold prices till the next hearing of this case on Jun 5, 2025, which is likely to extend indecisive moves by the gold futures till then amid surging bearish pressure at the current levels.
Gold futures look ready to slide this month as US President Donald Trump claims that his tariffs will bring ‘trillions of dollars to the country.’ If he is right, yellow metal is likely to lose its shine till the first week of June this year.
Gold prices fell this morning, pressured by a resilient dollar amid some signs of strength in the U.S. economy. Legal sparring over President Donald Trump’s trade tariffs rattled risk appetite. In contrast, gold futures are ready to decline further as the surging uncertainty does not seem to provide any support to gold prices.
Undoubtedly, the gold futures remained under selling pressure after testing a high in May this year at $3395 due to prevailing weakness in the dollar last week after Trump’s announcement to delay his plans to impose steep tariffs on the European Union but the gold futures moved down after the Federal Court’s ruling on Wednesday.
I anticipate that the gold futures are likely to remain extremely volatile till June 5, but the overall trend could extend bearish pressure.
Technical Levels to Watch
In the daily chart, gold futures are trading below the immediate resistance at 9 DMA at $3339, after a volatile move on Thursday from the day’s low at $3291 to the day’s high at $3368 indicating limits for this Friday, despite the formation of a bearish candle today that is likely to extend further if the gold futures find a breakdown below the immediate support at the 20 DMA at $3308 where a breakdown could push the gold futures to head towards the next significant support at the 50 DMA at $3239.
Undoubtedly, yesterday’s move has capped the upside for the gold futures at $3368 due to the thick presence of bears above $3370 but the downside is open due to the prevailing economic scenario, while the Dollar Index showing a surge in strength that may push the gold futures even below the immediate support at 20 DMA at $3309 in a short while.
In the weekly chart, gold futures are showing extreme weakness as facing extensive bearish pressure above $3373 and trying to defend the immediate support at 9 DMA at $3270, from where a reversal was seen this week but the surging selling pressure could push the gold futures once again below the 9 DMA during the next week.
Disclaimer: Readers are advised to take any position in gold at their own risk as this analysis is based only on observations.