You can’t keep the gold bugs down for too long it would seem. The drop last week was a testing one but the 50.0 Fib retracement level held, at least on the daily chart as seen above. That is leading to a solid rebound this week with price now looking for a firm run back above the $3,300 level.

The jump takes out both the 100 and 200-hour moving averages at $3,270 and $3,294 respectively as well. That shifts the near-term bias to being more bullish again currently.

In the bigger picture, the same drivers that have led to gold’s surge in March and April are all still playing out. There’s still some reservations on how Trump’s tariff plans are going to play out and US-China relations continue to be one that doesn’t look like it will be resolved soon.

On the latter, there is hopeful optimism that tariff levels will be reduced to around 50% to 60%. Sure, that’s an improvement to the current situation. But it begs the question, doesn’t this all just mean that tariffs are here to stay? And if so, the long-term negative impact is something that broader markets will have to consider – which I believe we are nowhere near considering as of now.

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