Gold posted a decline in early trading on Monday, as it lost some of its positive momentum to retreat from over a two-week high. The SMA 9 provides negative signals, as the price is moving below it on the four-hour chart.  

Meanwhile, gold is trading near the lower line of the bullish channel, looking forward to hovering above it. A sustained move above the aforesaid channel line may push prices to resume their upward march near weekly resistance levels of $3414 then $3470. 

On the flip side, if gold drops beneath bullish channel, it could put pressure on the price to retreat towards the first support level at $3253. A break below it may prompt prices to drop towards the second support level at $3148.

Regarding fundamentals, President Donald Trump said Sunday that he agreed to an extension on the 50% tariff deadline on the European Union until July 9 after receiving a call from Ursula von der Leyen, President of the European Commission.

On the economic data front, the U.S. Core Personal Consumption Expenditures index, the Federal Reserve’s favorite inflation measure, will be carefully watched. Analysts expect annual Core PCE inflation to remain at 2.6%, noting that a higher-than-expected reading could prompt the Fed to hold interest rates in the near future. 

In addition, the minutes from the Federal Open Market Committee (FOMC) meeting could provide insights about directions among U.S. policymakers. Markets are also awaiting statements from several FOMC members, which could influence market movements.

Finally, the U.S. Gross Domestic Product (GDP) for the first quarter is likely to garner attention. The second GDP reading is expected to confirm a contraction of 0.3%, following a growth of 2.4% in the last quarter of 2024.