Gold Price Rises Amid Weaker USD, Fed Rate Cut Bets by Amit Gupta, Kedia Advisory
Gold prices started the week on a positive note, rebounding from a three-week low near $2,832. The yellow metal gained traction due to a weakening US Dollar and growing expectations of Federal Reserve rate cuts in June and September. Concerns over Donald Trump's tariff policies and the potential for a global trade war further supported gold’s safe-haven appeal. However, technical indicators suggest caution, as resistance near $2,885 could limit further gains. Traders are closely monitoring upcoming US macroeconomic data, including the ISM Manufacturing PMI and Nonfarm Payrolls, for fresh cues. While gold remains supported, its technical setup signals a possible continuation of the corrective pullback.
Key Highlights
* Gold price rebounds from a three-week low near $2,832.
* Fed rate cut expectations weaken the US Dollar, boosting gold.
* Trump’s tariff plans raise trade war concerns, favoring safe-haven assets.
* Technical indicators suggest resistance near $2,885, limiting gains.
* Key US macroeconomic data will influence gold’s near-term movement.
Gold prices started the new week with mild gains, recovering from a three-week low of around $2,832. The positive momentum is primarily driven by a weaker US Dollar, as market participants anticipate two Federal Reserve rate cuts this year. The latest US inflation data, which showed a slight decline in the PCE Price Index, has reinforced expectations that the Fed will ease monetary policy, supporting gold’s upward movement.
Apart from rate cut bets, geopolitical and trade tensions further contribute to gold’s resilience. US President Donald Trump’s tariff announcement, including increased duties on imports from Canada, Mexico, and China, has fueled concerns over a potential global trade war. These developments have strengthened demand for gold as a safe-haven asset. However, despite these supportive factors, the lack of strong follow-through buying indicates caution among traders.
From a technical standpoint, gold faces resistance around the $2,885 level, with further hurdles near $2,900 and $2,934. On the downside, immediate support lies at the $2,832 region, with a break below $2,800 signaling a deeper correction. Traders are now focused on upcoming US economic data, including the ISM Manufacturing PMI and Nonfarm Payrolls, which could influence the USD and gold’s trajectory.
Finally
Gold remains supported by a weaker USD and geopolitical concerns, but technical resistance may limit gains. Upcoming US macroeconomic data will be crucial in determining gold’s near-term direction.
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