Gold Price Forecast: XAU/USD extends winning streak on renewed global trade tensions

• Gold price rises to near $3,340 as Trump's fresh tariff threats have increased demand for safe-haven assets.
• US President Trump imposes 35% tariffs on Canada and prepares to announce additional duties on the EU.
• Investors shift their focus to the US inflation data for June.

Gold price (XAU/USD) extends its winning streak for the third trading day on Friday. The yellow metal jumps to near $3,340 as demand for safe-haven assets has increased after United States (US) President Donald Trump threatens to increase the blanket levy to "15% or 20%" from 10% announces on so-called "Liberation Day" on April 2.

Fresh tariff threats from US President Trump have jolted demand for riskier assets across the globe. On Thursday, Trump said in a telephone interview with NBC News that he could announce 15% or 20% tariffs on nations that have failed to close a deal during the 90-day reciprocal tariff pause period.

"We're just going to say all of the remaining countries are going to pay, whether it's 20% or 15%. We'll work that out now," Trump said.

On Thursday, Trump also announced 35% tariffs on Canada and stated that he will reveal additional duties on imports from the European Union (EU) today or tomorrow.

Trade tensions between the US and the EU are expected to upheaval global trade, considering the size of business both the economies.

Going forward, the next major trigger for the Gold price will be the US Consumer Price Index (CPI) data for June, which will be released on Tuesday. Theoretically, Gold outperforms in a high inflation environment.

Gold technical analysis

Gold price recovers to near the 20-day Exponential Moving Average (EMA), which trades around $3,330. The precious metal stays below the Ascending Triangle formation on a daily timeframe.

Theoretically, a breakdown of the asset below the upward-sloping trendline of the above-mentioned chart pattern, which is placed from the April 7 low of $2,957, results in a sharp downfall. The horizontal resistance of the chart formation is plotted from the April 22 high around $3,500.

The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating a sideways trend.

Looking down, the Gold price would fall towards the round-level support of $3,200 and the May 15 low at $3,121, if it breaks below the May 29 low of $3,245

Alternatively, the Gold price will enter in an unchartered territory if it breaks above the psychological level of $3,500 decisively. Potential resistances would be $3,550 and $3,600.

Gold daily chart