We are not here to discuss the influence of social media on our lives, but let’s be honest: when the President of the world’s largest economy posts a picture saying everything’s falling apart, it’s hard to stay calm. Yet, the market players manage to hold steady…
“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” Trump wrote on his platform, Truth Social, following the long-awaited call between the two leaders.
Tensions have been rising between the United States and China as expected trade talks appear to have stalled just weeks into a 90-day tariff truce agreed to last month in Geneva.
That truce temporarily halted a damaging tit-for-tat escalation of tariffs triggered by Washington’s decision to raise duties on Chinese imports.
The Trump administration has since accused Beijing of violating the agreement by restricting exports of critical rare earth minerals — materials essential to a wide range of American manufacturers. Shortages of minerals could bring some American factories to a standstill.
In response, the Trump administration has cracked down on Chinese international students living in the US. China, in turn, stated that such measures, along with others targeting its tech sector, violate the temporary trade truce reached in May and further escalate tensions.
Traders have learned the pattern by now: tariffs are proposed, markets stumble, deadlines shift, and then everything changes with a single post on Truth Social.
The latest round of U.S.-China friction, with both sides accusing each other of breaking the tariff truce, has injected a dose of uncertainty into global markets.
However, as traders adopted a cautious stance ahead of any fresh developments, XAUUSD hovered near the $3,400 mark on Thursday, steadying after wild fluctuations seen in May.
The yellow metal hasn’t taken off this time — perhaps because traders have seen it all before, and now they’re holding out for concrete policy action rather than reactive social media commentary.
With the Fed staying quiet ahead of this month’s FOMC decision, and a loaded U.S. economic calendar (including Friday’s nonfarm payrolls), gold’s next move may depend on broader macro trends.
A cooling labor market could renew bets on rate cuts and send gold higher — but strong numbers might do the opposite.
For now, $3,400 looks like the new comfort zone. Whether that level holds as a springboard or a ceiling will depend on how geopolitical noise and economic signals intersect in the coming days.
