Gold Price Forecast: XAU/USD refreshes three-week high, aims to revisit $3,400

• Gold price jumps to near $3,370 as Trump's new tariff threats have prompted global trade tensions.
• US President Trump announces 30% tariffs on imports from the EU and Mexico.
• Investors shift their focus to the US CPI data for June.

Gold price (XAU/USD) posts a fresh three-week high around $3,370 during the European trading session on Monday. The precious metal extends its winning streak for the fourth consecutive trading day on Monday, as global trade tensions have escalated following the imposition of 30% tariffs by the United States (US) on imports from its major trading partners, the European Union (EU) and Mexico, over the weekend.

Theoretically, heightened global economic tensions increase demand for safe-haven assets, such as Gold.

Over the weekend, US President Trump announced tariffs on the EU and Mexico for not striking a deal during the 90-day reciprocal tariff pause period.

Meanwhile, EU President Ursula von der Leyen has stated that her team is still in talks with Washington and has postponed plans of countermeasures till the August 1 deadline. However, she has warned that the trading bloc could announce proportionate countermeasures, if required, to safeguard its interests.

Last week, the US also imposed tariffs on 20 nations out of which notable names were Japan, Canada, and South Korea that are its leading trading partners.

Going forward, investors will focus on the US Consumer Price Index (CPI) data for June, which will be published on Tuesday. Investors will pay close attention to the US inflation data as it will influence market expectations for the Federal Reserve's (Fed) monetary policy outlook.

The CPI report is expected to show that price pressure grew at a faster pace. Gold price performs strongly in a high-inflation environment.

Signs of high inflation often force Fed officials to argue in favor of keeping interest rates higher for a longer period. Higher interest rates by the Fed bode poorly for non-yielding assets, such as Gold.

Gold technical analysis

Gold price trades in a Symmetrical Triangle formation on a daily timeframe, which indicates a volatility contraction. The upward-sloping trendline of the above-mentioned chart pattern is placed from the May 15 low of $3,120.83, while its downward-sloping border is plotted from the April 22 high around $3,500

The 50-day Exponential Moving Average (EMA) around $3,305.77 acts as a key support area for the Gold price.

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

Looking up, the Gold price will enter uncharted territory if it breaks above the psychological level of $3,500 decisively. Potential resistances would be $3,550 and $3,600.

Alternatively, 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

Gold daily chart

consecutive trading day on Monday, as global trade tensions have escalated following the imposition of 30% tariffs by the United States (US) on imports from its major trading partners, the European Union (EU) and Mexico,