Daily Analysis: 26‑05‑2025

Spot gold ended last week with a strong gain of 4.8%, closing at 3,358. The rally was driven by several factors, including Moody’s downgrade of the U.S. credit rating, market concerns over the budgetary impact of Trump’s tax cut package, and his announcement of a 50% tariff on European Union countries.

However, at the start of the new week, gold opened with selling pressure following news that the implementation of tariffs on the EU has been postponed until July 9. Despite continued dollar weakness, geopolitical fragility in the Middle East persists.

Technically, gold may attempt to hold above the 3,325 support level. If this level is broken, the price could move toward the 3,288 area. On the upside, a break above the 3,350 resistance could lead to a move toward 3,370.