Gold prices opened the week on a softer note, retreating slightly after last Friday’s rally to a two-week high. The pullback follows U.S. President Donald Trump’s decision to delay a planned 50% tariff on European Union imports until July 9, which has bolstered risk sentiment and weighed on demand for the safe-haven asset.
However, analysts note that the decline lacks strong bearish momentum. Ongoing concerns about the U.S. fiscal outlook—exacerbated by a $4 trillion spending bill passed by the House—alongside persistent geopolitical tensions in Ukraine and the Middle East, continue to offer underlying support for gold.
Additional tailwinds include expectations that the Federal Reserve will cut interest rates later this year, amid weaker-than-expected inflation data and signs of a cooling economy. The U.S. Dollar has extended a two-week decline to a fresh monthly low, further cushioning gold’s losses.
Technically, gold remains supported near $3,325, a level aligned with an ascending trendline. A sustained break below that could expose the $3,300 level and potentially the 200-period SMA around $3,283. On the upside, a move past Friday’s high of $3,366 could pave the way toward $3,400 and possibly retest April’s record of $3,500.
Market focus now shifts to the upcoming FOMC minutes on Wednesday and key U.S. economic data later this week, including durable goods orders, GDP, and the Fed’s preferred inflation gauge—the PCE Price Index.
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