Gold Slides to $3,300 as Dollar Gains, Risks Loom by Amit Gupta, Kedia Advisory
Gold prices slipped closer to $3,300, hitting a multi-day low amid modest US Dollar strength. Despite the slide, expectations of Federal Reserve rate cuts and growing US debt concerns could limit deeper losses. President Trump’s massive tax and spending plan, fresh Israeli strikes on Yemen, and renewed trade tensions are fueling safe-haven demand. While traders await FOMC minutes for clues on the Fed’s rate path, geopolitical and fiscal risks keep market sentiment cautious. A break below $3,300 may trigger further decline, but any rebound faces resistance at $3,325 and beyond.
Key Highlights
* Gold price nears $3,300 amid mild US Dollar strength.
* Trump’s tax and spending plan adds $3.4 trillion to US debt.
* Israeli strikes on Yemen increase geopolitical tensions and safe-haven demand.
* Markets see over 70% chance of Fed rate cuts by September.
* FOMC minutes and tariff updates to guide Gold’s next move.
Gold prices started the new week under pressure, slipping toward the $3,300 mark during early Asian trading. This move marks a multi-day low as modest US Dollar strength weighed on the precious metal. Despite this decline, Gold’s downside appears capped by several supporting factors that may keep sellers cautious.
Investors remain concerned about the long-term fiscal outlook as US President Donald Trump’s newly signed $3.4 trillion tax-cut and spending bill threatens to deepen America’s debt burden over the next decade. Meanwhile, market bets are rising that the Federal Reserve will cut interest rates at least twice before year-end, with a 70% probability of the first cut coming in September. Lower borrowing costs typically weaken the Dollar and support non-yielding assets like Gold.
Adding to the complex backdrop, the geopolitical landscape turned tense after Israeli forces launched fresh strikes on Houthi targets in Yemen, reacting to repeated attacks on Israeli interests. Furthermore, Trump’s aggressive tariff stance has resurfaced as he warned of additional levies on countries aligning with anti-US policies, renewing trade uncertainty and boosting Gold’s safe-haven appeal.
Looking ahead, traders will closely watch Wednesday’s FOMC meeting minutes for clearer signals on the Fed’s policy trajectory. Technically, a decisive break below $3,300 could open the door toward $3,270 and $3,248. On the flip side, any recovery will face resistance at $3,325 and may extend to $3,355 if momentum picks up.
Finally
While Gold remains under pressure near $3,300, persistent fiscal worries, geopolitical tensions, and upcoming Fed cues may help the metal retain its safe-haven shine in uncertain times.
Above views are of the author and not of the website kindly read disclaimer
