Gold Price Update: Mild Dip Below Multi-Week High, Bullish Outlook Intact
Gold (XAU/USD) pulled back slightly from its recent three-week peak during Monday’s Asian session. This mild dip comes as the U.S. dollar remains strong, held up by falling odds of a near-term Fed rate cut. A sturdy dollar acts as a headwind for gold, which doesn’t yield interest.
Still, global trade tensions continue to support gold’s appeal as a safe-haven asset. New threats of high tariffs—such as a 30% levy on EU and Mexican goods beginning August—have kept investors cautious. These tensions balance out some of the dollar-driven pressure on gold and prevent major losses.
Market players are also eagerly awaiting fresh inflation data from the U.S., including CPI today and PPI tomorrow. These reports will hint at the Fed’s future rate path, and traders are holding off on new big bets until then.
Technical Perspective:
Gold managed to break above its 100-period moving average on the 4-hour chart, moving past the $3,358–3,360 resistance zone. This bullish structure suggests upside potential toward the psychological $3,400 level. On the downside, $3,240 acts as strong support—any dip near $3,300 is likely seen as a buying opportunity.
Impact:
Gold may remain supported by trade tension and safe-haven demand. If U.S. inflation beats expectations, it could possibly strengthen the dollar and slightly pressure gold. But cooling inflation might push gold higher.