Gold Price Holds Near $3,340 as Fed Cut Bets and Tariff Uncertainty Drive Demand

Gold Price Holds Strong Near $3,340 as Fed Cut Bets and Tariff Uncertainty Lift Demand

Gold (XAU/USD) extends its rally for the second consecutive day, trading close to $3,340, up more than 1% in Tuesday’s early European session. Support comes from a weaker US Dollar, expectations of a Federal Reserve rate cut, and uncertainty around President Trump’s trade policy.

USD Hits Multi-Year Low, Boosting Gold

The US Dollar remains subdued, touching its lowest level since February 2022, as markets increasingly bet on the Fed initiating a fresh rate-cutting cycle. This supports the non-yielding yellow metal, as lower interest rates reduce the opportunity cost of holding gold.

Trump Tariff Jitters Support Safe-Haven Gold

Investor concerns over a potential escalation in US tariffs—ahead of the July 9 deadline—are also buoying gold demand. Despite positive equity sentiment, gold remains resilient, highlighting investor caution amid uncertain macro policies.

“The ambiguity surrounding Trump’s trade strategies offsets risk appetite in equities, supporting gold’s bullish tone,” analysts note.

Key Events Ahead: Powell & NFP

While gold’s trend remains upward, traders are holding back from aggressive positions, awaiting Fed Chair Jerome Powell’s remarks later today, and the US Nonfarm Payrolls (NFP) report due Thursday.

• Resistance level: $3,360
• Support level: $3,300

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