Gold News: Gold Eyes Breakout Trigger at $3349.19 on Weaker Dollar

Gold Prices Climb as Dollar Weakens and Yields Drop

Gold prices pushed sharply higher on Tuesday, reclaiming the 50-day moving average at $3320.70, now acting as new support, and holding firm above a pivot at $3310.48. The metal is testing its 50% retracement of $3347.97 within the $3451.53 to $3244.41 range, with momentum poised to accelerate if buyers clear this level.

At 10:48 GMT, XAU/USD is trading $3348.74, up $45.59 or +1.38%.

Weaker Dollar Lifts Gold as Trump’s Tariffs and Budget Bill Roil Markets

The dollar index dropped to its lowest since early 2022, making gold more attractive for overseas buyers. The greenback slipped 0.64% against the yen and 0.33% against the Swiss franc, with the euro holding near a four-year high. The drop reflects traders pricing in deeper Fed rate cuts as Trump’s aggressive push for a tax-cut and spending bill stirs fiscal concerns and trade tensions.

President Trump warned Japan and other partners of sharply higher tariffs as a July 9 deadline approaches, adding to uncertainty. At the same time, Trump continued pressing the Fed to cut rates aggressively, sending Chair Powell a handwritten list of global rates demanding U.S. policy rates drop closer to 0.5%-1.75%.

Federal Reserve Rate Cut Bets Increase as Treasury Yields Ease

Treasury yields retreated, supporting gold’s bid. The 10-year yield fell over 3 basis points to 4.195%, while the 30-year yield eased to 4.741%, and the 2-year yield dipped to 3.709%. Lower yields reduce the opportunity cost of holding gold, aiding its climb.

Goldman Sachs now expects three Fed rate cuts this year, shifting from its prior forecast of a single cut, citing muted tariff effects and signs of labor market softening. Traders will closely watch ADP employment figures on Wednesday and non-farm payrolls on Thursday for confirmation, as any labor weakness could deepen dollar losses and enhance gold’s appeal.

Gold Prices Forecast: Can Bulls Clear $3348 for a Run Toward $3370?

With gold holding above key technical levels and benefiting from a weaker dollar and lower yields, the metal’s safe-haven demand remains underpinned by ongoing fiscal and trade uncertainties. If bulls clear the $3347.97 pivot decisively, momentum could extend toward the next resistance near $3370, attracting further buying interest.

Traders should monitor Treasury yields, dollar performance, and U.S. labor data closely this week. Should the Fed pivot further toward easing, gold prices projections remain bullish, with potential for a test of the $3370–$3400 zone if U.S. fiscal and tariff uncertainties persist.

More Information in our Economic Calendar.