Gold Price Holds Near $3,320 Despite Mixed Signals and Fed Rate Cut Bets

Gold Price Holds Near $3,320 Despite Mixed Signals and Fed Rate Cut Bets

Gold (XAU/USD) continues to show mild strength for the second consecutive day, trading around $3,320 on Thursday during the early European session. While the yellow metal finds support from dovish Federal Reserve expectations, its gains remain capped amid mixed market sentiment.

Fed Rate Cut Expectations Support Gold

The FOMC minutes released Wednesday revealed growing internal support for at least one interest rate cut this year. With US Treasury yields edging lower, investors are favoring non-yielding assets like gold, which has historically performed well in such macroeconomic conditions.

Trade Tensions Boost Safe-Haven Demand

Concerns around US President Donald Trump's trade tariffs and their potential drag on global economic growth continue to push investors toward safe-haven assets. This geopolitical uncertainty provides an underlying floor for gold prices.

USD Weakness Offsets Equity Market Gains

A modest retreat in the US Dollar (USD) further bolsters gold’s appeal. However, a generally bullish tone in equity markets and traders awaiting US Weekly Jobless Claims data and upcoming Fed speeches are limiting upside momentum.

Key Technical Zone: $3,320

• Immediate Resistance: $3,330
• Support Level: $3,300

Gold needs a strong breakout above $3,330 to confirm a bullish continuation.