Gold Slips to $3,300 as US Dollar Gains on Hawkish Fed, Trade Deal Hopes

Gold Price Drops to $3,300 as Fed Outlook, Trade Optimism Boost US Dollar

Gold Pressured by Strong US Dollar and Firm Yields

Gold (XAU/USD) fell sharply to $3,300 in the European session on Monday, as the US Dollar gained ground on rising Treasury yields and expectations that the Federal Reserve (Fed) will hold off on rate cuts in July.

The move comes as investors absorb stronger-than-expected Nonfarm Payrolls (NFP) data released last Thursday, which indicated continued strength in the US labor market. This solid jobs print has reduced recession fears and strengthened the case for keeping interest rates higher for longer—a bearish factor for non-yielding assets like Gold.

Trade Deal Hopes and BRICS Tariff Threats in Focus

Further compounding the pressure on Gold, US President Donald Trump reiterated tariff threats on countries that align with “Anti-American BRICS policies”, stoking geopolitical unease. However, optimism over potential US trade deals with several countries before the July 9 tariff deadline has helped markets regain a modest risk-on tone—limiting safe-haven demand for Gold.

Gold Technical Outlook: Eyeing Triangle Support

Technically, XAU/USD is now testing critical triangle support at $3,300, with a break below this level possibly exposing further downside towards $3,275 and $3,250.

Key Drivers:

• US Dollar strength post-NFP
• Fed policy expectations
• Trade deal optimism
• BRICS-related tariff risks
• Triangle pattern technical support

📌 For more real-time precious metals insights, visit Tredu.com/commodities