Gold prices return to $3,300, and the market is optimistic about the trend as the trade war heats up

Colin Cieszynski, chief market strategist at SIA Wealth Management in Canada, believes that the renewed trade war tensions are beneficial to gold prices. “I am optimistic about gold prices in the coming weeks as Trump speaks harder about tariffs again.”

This week, a total of 16 analysts participated in the Gold Survey of information service provider Kitco. 13 (81%) expected gold prices to rise next week, and three (19%) believed that gold prices would consolidate sideways. No one predicts that gold prices will fall.

Adam Button, head of currency strategy at Forexlive.com, believes that gold prices will continue to rise because the market has regarded gold as the first asset to deal with adverse tariff news.

Driven by the demand for safe-haven funds, gold prices returned to above the $3,300 level before the long weekend in the United States. Gold futures for June delivery rebounded 5.3% this week to close at $3,357.7.

Last Friday (May 16), international credit rating agency Moody’s downgraded U.S. credit reviews, triggering funds to withdraw from U.S. bonds and pour into gold. On Friday (23rd), US President Trump escalated the trade threat again, threatening to impose at least 25% tariffs on smartphones and 50% tariffs on goods imported from the EU, causing the stock market to fall.

As trade tensions escalate again, the market is optimistic about the subsequent gold price trend.