Gold is rebounding after establishing a short-term cycle low on May 15th. This recovery is expected to extend into next week before potentially reversing and heading toward new lows in June. Over the medium term, our analysis supports a pullback toward the $2,800 level before the next up leg later this year.

Gold prices rise in early trade as concerns over the U.S. government’s debt and geopolitical uncertainties support safe-haven demand.

The rally comes after Trump dropped another surprise trade bombshell by recommending 50% tariffs on the European Union.