Despite intermittent volatility, gold remains highly sensitive to shifts in Fed policy and global risk headlines. Traders now look to Powell’s second-day remarks and Friday’s PCE inflation data for clues on future rate moves. The prospect of lower inflation and reduced safe-haven demand continues to weigh on gold’s short-term outlook.
Meanwhile, the latest Fed comments support the narrative of a potential rate cut by September. Fed Governors Bowman and Waller expressed openness to easing if inflation continues to moderate. While this offers medium-term support for gold, the immediate effect of the ceasefire and stable oil prices has capped upside momentum. A break below $3,300 could open the door to further downside unless renewed risks emerge.
Gold Technical Analysis
XAUUSD Daily Chart – Ascending Triangle
The daily chart for spot gold shows that the price has found support at $3,300, near the 50-day SMA, following the Iran-Israel ceasefire. A break below $3,300 would signal a breakout from the ascending triangle and could trigger a downward move. However, a rebound from this level and a break above $3,450 would initiate the next strong surge in the gold market.
The price is currently consolidating at the edge of the triangle, awaiting direction. The RSI hovers around the mid-level, indicating market indecision. Despite the recent correction, the gold market remains a strong buying opportunity on dips for long-term investors.
