Gold News: Bullion Stalls as Risk Appetite Grows, Gold Price Below 50-Day MA

Gold Prices Hold Ground as Fed Meeting and Dollar Recovery Take Center Stage

Gold prices were steady on Monday as market sentiment improved following a partial U.S.-EU tariff deal, while attention shifted to the upcoming Federal Reserve policy decision. Spot gold last traded at $3,336 after briefly touching its lowest level since July 17. A stronger dollar and muted bond market reactions capped bullion’s upside, though longer-term rate expectations remain a supportive factor.

At 11:57 GMT, XAU/USD is trading $3,336.89, down $0.180 or -0.01%.

Dollar Index Rises on Tariff Relief and Trade Progress

The U.S. Dollar Index climbed 0.61% to 98.26 after the U.S. and European Union agreed to impose a reduced 15% import tariff on EU goods, averting a more severe 30% levy previously threatened. The euro fell 0.4% to $1.1693 as the dollar advanced against major peers. Technically, the DXY has reclaimed ground toward the 50-day moving average at 98.30. A breakout above 98.95 could accelerate bullish momentum and apply pressure to gold in the sessions ahead.

U.S. Treasury Yields Flat Ahead of Fed and Inflation Data

The 10-year Treasury yield held around 4.40%, trading near both its 50-day and 200-day moving averages. Traders remain sidelined ahead of the Fed decision on Wednesday and the core PCE inflation report on Thursday.

The Fed is widely expected to hold rates steady in the 4.25%–4.50% range, with a 97% probability priced in. However, the tone of Chair Powell’s press conference will be critical for gold traders assessing the likelihood of a September rate cut.

Trump-Powell Meeting and Trade Headlines Reduce Safe-Haven Appeal

President Trump signaled a constructive meeting with Fed Chair Jerome Powell, hinting at support for lower interest rates. Meanwhile, optimism around a renewed U.S.-China truce and the EU deal has curbed safe-haven demand. Equity markets in Europe rallied to multi-month highs, underscoring a broader risk-on tone that has dulled appetite for gold despite underlying rate-cut expectations.

Gold Prices Forecast: Below 50-Day MA, Bears Have Short-Term Control

Gold remains under pressure after closing below the 50-day moving average at $3,343.10. Immediate support sits at $3,310.72, followed by $3,282.64 and $3,244.13. A clean move below these levels would expose deeper downside toward $3,166.20.

Resistance is now firmly at $3,343.10 and $3,439.04. With the dollar rebounding and no confirmed Fed pivot, buyers lack near-term control.

Outlook: Bearish while gold remains below its 50-day moving average, currently at $3,343.10. Dollar strength and a neutral Fed tone favor downside pressure. Bulls need a sustained close above the 50-day MA to regain near-term control.

More Information in our Economic Calendar.