Gold price forecast: XAU/USD stays below $3,400 but could rise on trade fears
On July 22, gold prices (XAU/USD) stayed just below the $3,400 level after two days of gains. The market is waiting for updates on the ongoing US-EU trade talks, especially with the August 1 tariff deadline getting closer. These trade-related worries, along with concerns about the Federal Reserve’s independence, are pushing investors toward gold as a safe-haven asset.
A weaker US Dollar and falling US Treasury yields are also supporting gold prices. The Dollar Index has dropped near 97.85, and 10-year yields are at their lowest level in a week. When the dollar weakens and yields fall, gold becomes more attractive because it doesn’t pay interest.
From a technical analysis view, gold has pulled back slightly from a recent high of $3,403, but it’s still holding above key support levels. The trend shows that buyers could return if the dollar stays soft and global uncertainty continues.
Overall, the gold price outlook remains positive, especially if inflation stays low, interest rates remain unchanged, and global trade tensions rise.
Impact:
Gold might climb toward $3,440 or higher if trade risks grow. However, if the US Dollar strengthens, a short-term pullback in gold prices could possibly happen.