The nearest support is a pair of 50% levels at $3166.46 and $3018.52. The major support is the 52-week moving average at $2692.05.
There is nothing really exciting about this chart pattern. Investors essentially have two choices, buy strength or buy a dip. If bullish news drives the price action then investors are likely to chase it higher. Economic data, Fed uncertainty and a potential trade war with China are events that could cap gains and lead to a retreat into a value area like $3166.46 to $3018.52.
Fed Steady, But Policy Uncertainty Lifts Bullion
The Federal Reserve held interest rates steady as expected, but Chair Jerome Powell’s post-meeting comments left the door open for future easing. Powell flagged ongoing concerns about elevated inflation and softening labor market indicators, reinforcing the perception that the Fed lacks a clear policy path forward. Markets are now pricing in up to 75 basis points of rate cuts before year-end, with expectations concentrated around the September meeting.
That uncertainty—paired with the Fed’s refusal to commit to a timeline—reinvigorated gold’s appeal as a hedge against monetary policy indecision. Bond yields remained range-bound, offering no resistance to gold’s advance.
Dollar Eases, Boosting Foreign Demand for Gold
The U.S. dollar slipped 0.3% during key sessions last week, briefly losing ground to major currencies including the yen and euro. This helped gold become cheaper for foreign buyers and supported fresh buying from Asia, particularly from China following the end of its national holiday. Although the dollar finished the week marginally higher overall, the midweek softness provided enough of a tailwind to lift bullion from recent lows.
Trade Tensions Persist, But Tariff Tone Softens
Gold found additional support from ongoing trade uncertainty. President Trump’s comments on tariffs kept traders on edge, though notably, his proposal of an 80% tariff on Chinese imports marked a reduction from the 145% figure previously floated. The moderation helped ease fears of a sharp escalation, especially as U.S. and Chinese officials prepared to meet in Switzerland over the weekend for de-escalation talks. These developments reduced the risk of a fresh trade shock, but still preserved gold’s value as a geopolitical hedge.
