Moreover, the 2025 GDP growth outlook was lowered to 1.4% due to uncertain trade policies and economic challenges in the US and China. Meanwhile, unemployment is expected to rise to 4.5%. These projections reflect a cautious stance, maintaining tight monetary policy and limiting gold’s rally.
The US Dollar Index rebounded from the 98 support level, supported by stable Treasury yields and Powell’s comments on tariffs and inflation. Real yields remained at 2.081%, adding pressure to the gold market. However, the World Gold Council reported stronger demand from central banks for bullion, which may support prices in the longer term. Traders now await the Philadelphia Fed Manufacturing Index, expected to improve from -4 to -1, as the next potential catalyst.
Gold Technical Analysis
XAUUSD Daily Chart – Consolidation below $3,400 Levels
The daily chart for spot gold shows that the price is consolidating near the edge of an ascending triangle. A break above this triangle will likely trigger a strong upward move to $4,000. The formation of an ascending triangle within an ascending broadening wedge indicates strong volatility and bullish price action. Moreover, the price remains above the 50-day and 200-day SMAs, signaling continued positive momentum.
