Gold prices continue to set new records amid market instability

According to Kitco News, market concerns are pushing many investors, including central banks, to rush to buy gold as a safe haven.

As of now, the price of June gold increased by 13.60 USD to 3,163.90 USD, while the price of May silver also increased slightly by 0.094 USD to 34.705 USD/ounce.

Stock Market and Tariff Concerns

Asian and European stock markets mostly rose in overnight trading, but US stock indexes are expected to open slightly lower in New York.

Notably, the S&P 500 and Nasdaq just had their worst quarters since 2022. Risk aversion remains high ahead of the announcement of new US tariffs on countries with which they have trade relations, expected to take effect from Wednesday.

David Morrison of Trade Nation commented: "Usually, after a bad first quarter, investors would expect better opportunities ahead. But right now, that doesn't seem to be the case. Instead, the only word that is being repeated when describing the current market environment is 'uncertainty'.

The main reason is Mr. Trump's tariff policy. The US president has threatened to impose retaliatory tariffs on all trading partners, while proposing a 25% tax on imported cars into the US. The problem is that there are so many conflicting statements about this plan that the market cannot predict the real consequences."

Developments in related markets

The US dollar index rose slightly in today's trading session, while WTI crude oil prices fluctuated around $71.50/barrel. The yield on 10-year US Treasury bonds is currently at 4.159%.

Some of the US economic data released today include the Johnson Redbook retail sales report, manufacturing PMI, ISM manufacturing activity report, RCM/TIPP economic optimism index, construction spending, JOLTS employment survey and domestic auto sales.

Technical Outlook for Gold and Silver

Technically, June gold futures are in a strong uptrend with the advantage for the buyers. The next target for the bulls is to push the price above the key resistance level at $3,200. Meanwhile, the bears hope to push the price below the support level at $3,031. The immediate resistance is currently at $3,177 (last night's high), followed by $3,200. The immediate support is at $3,152.20 and then $3,125.

In silver, the bulls also have the upper hand in the short term, with prices maintaining an unstable uptrend over the past three months. The bulls’ next target is a break above the resistance at $35.80 (October 2024 high), while the bears are aiming for a break below $33.165. The nearest resistance and support levels are $35.00/$35.495 and $34.165/$34.00, respectively.

In the current situation, gold continues to be a bright spot in the financial market, attracting cash flow thanks to the risk-aversion sentiment from geopolitical factors and unstable economic policies.

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