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Gold prices continue to decline, slipping below the $2,900 mark, as the US Dollar strengthens due to a rebound in Treasury bond yields. The metal faces further downward pressure amid a positive risk sentiment in global markets. However, uncertainty over US President Donald Trump’s tariff plans and ongoing trade war fears support gold as a safe-haven asset. Additionally, expectations of Federal Reserve interest rate cuts this year could limit losses. Investors are closely monitoring the US Personal Consumption Expenditures (PCE) Price Index, due Friday, for further insights on Fed policy. A break below the $2,860 support level may signal deeper losses, while resistance lies around $2,950.

Key Highlights

* Gold price drops below $2,900 amid USD strength and rising bond yields.

* Trump’s tariff plans create uncertainty, providing some support for gold.

* Fed rate cut expectations may help limit downside pressure on bullion.

* Key US economic data releases this week may drive short-term volatility.

* Technical support at $2,860 remains crucial for further price direction.

Gold prices have extended their decline, slipping below the $2,900 level as the US Dollar strengthens for the second consecutive day. A rebound in US Treasury bond yields has helped the greenback recover from its multi-month low, adding to gold’s downward pressure. The generally positive risk sentiment in global markets is further weighing on the metal’s appeal as a safe-haven asset.

Despite this, uncertainty surrounding US President Donald Trump’s trade policies is providing some support for gold. Trump’s recent statements on potential 25% tariffs on EU imports and revised deadlines for tariffs on Mexico and Canada have fueled concerns over global trade stability. Additionally, expectations that the Federal Reserve will cut interest rates further this year—amid weak economic data and slowing inflation—could limit the downside for gold prices.

Investors are now focusing on upcoming US economic data releases, including the PCE Price Index, the Fed’s preferred inflation gauge, due on Friday. Other key reports, such as Q4 GDP data, Durable Goods Orders, and Jobless Claims, could influence short-term price action. Comments from Federal Reserve officials may also impact market sentiment and the outlook for interest rates.

From a technical perspective, gold faces key support near $2,860. A drop below this level could accelerate losses toward $2,800. Conversely, resistance at $2,920 and $2,950 may cap any recovery attempts in the near term.

Finally

Gold prices remain under pressure as USD strength continues, but trade uncertainties and Fed rate cut expectations could offer support. Key economic data and technical levels will determine the next move.

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