Gold Price Lacks Directional Conviction Ahead of US-China Trade Updates

Gold Price Traders Wait for US-China Trade Talk Breakthrough

Gold Holds Below Recent Highs Despite Mild Bounce

The Gold price (XAU/USD) shows a tepid recovery from the $3,300 zone on Tuesday but lacks strong follow-through buying as investors remain cautious. The bullion struggles to climb past the overnight high amid an uncertain macro backdrop, with the market awaiting concrete developments from the ongoing US-China trade discussions.

Modest USD Strength Caps Gold’s Upside

The US Dollar (USD) holds modest intraday gains, reflecting investor optimism about a trade resolution, which in turn weighs on safe-haven assets like gold. The US Dollar Index (DXY) remains buoyant, limiting XAU/USD's upside despite mild dip-buying interest.

📊 Live USD Index Chart – DXY Market Insights

Fed Rate Cut Bets and Fiscal Concerns Lend Underlying Support

Despite dollar strength, expectations of further Fed rate cuts in 2025, concerns about US fiscal health, and geopolitical tensions provide a cushion for gold. Persistent risks, ranging from Middle East tensions to US debt trajectory, keep the precious metal appealing to defensive investors.

📈 Fed Rate Path Projections & Market Reaction

Mixed Sentiment Suggests Range-Bound Gold Ahead

The lack of clear momentum in either direction highlights traders’ preference to stay on the sidelines until more is known about the outcome of US-China negotiations. For now, gold is likely to trade within a tight range, supported by risk aversion but capped by dollar resilience.

📌 Key Support: $3,285
📌 Immediate Resistance: $3,320