Gold Price Slips Below $3,355 as USD Rebounds, Risk Appetite Improves

Gold Price Slips Below $3,355 as USD Rebounds, Risk Appetite Improves

June 3, 2025 – Commodity Market Update

The price of gold (XAU/USD) fell from a four-week high on Tuesday, reaching a daily low near $3,351 as the US Dollar (USD) posted a modest recovery during early European trading.

USD Strength Pressures Gold

A minor rebound in the USD from its recent multi-week lows has contributed to intraday selling pressure on gold. The greenback's uptick comes amid optimism over the US economy and near-term fiscal resilience, although this may prove short-lived due to longer-term concerns.

Additionally, a positive risk tone across equity markets is reducing investor appetite for safe-haven assets like gold, weighing further on XAU/USD in the short term.

Supportive Factors Remain for XAU/USD

Despite today’s downside, several supportive macro factors remain in play:

• Geopolitical tensions — particularly in Eastern Europe and East Asia — continue to support underlying demand for gold.
• Ongoing trade uncertainty and new tariffs also favor gold as a hedge.
• Fed rate cut expectations for 2025 cap USD upside, limiting gold’s potential downside.

Furthermore, concerns about US fiscal sustainability are likely to re-emerge, potentially weakening the USD over time and benefiting gold in the medium term.

XAU/USD Technical Outlook

• Support Level: $3,335
• Resistance Level: $3,370
• Trend Bias: Consolidation with bullish potential on dips
• Market Focus: Upcoming Fed speakers and US data releases

Related on Tredu.com:

• How Geopolitical Risks Drive Gold Prices
• XAU/USD Explained: What Moves the Price of Gold
• USD Strength vs. Gold: The Inverse Relationship