Gold Price Holds Steady Near One-Week High as Traders Await US Economic Data

Gold Price Steady Near Weekly High Amid Dovish Fed Expectations and Geopolitical Tensions

The Gold price (XAU/USD) is holding ground just below its one-week high, following a sharp intraday dip to the $3,338 level earlier in Thursday’s European session. The precious metal remains resilient amid a complex macro backdrop shaped by dovish Fed expectations, US-China trade uncertainty, and rising Middle East geopolitical risks.

US Dollar Remains Weak After CPI Miss

Recent US inflation data revealed that the Consumer Price Index (CPI) rose less than expected in May, reinforcing the view that the Federal Reserve (Fed) could cut interest rates as early as September. This keeps the US Dollar (USD) near its weakest level since April 22, bolstering the appeal of non-yielding assets like gold.

“The dovish Fed pivot strengthens the bullish narrative for Gold,” say market analysts, citing growing investor confidence in a 2025 easing cycle.

Geopolitical Tensions and Trade Concerns Support Bullion

Although initial optimism from the US-China trade headlines lifted risk sentiment temporarily, President Trump’s renewed tariff threats on Wednesday reversed the mood. Additionally, escalating Middle East tensions, with Israel reportedly preparing for action against Iran, continue to drive safe-haven flows into Gold.

Gold Technical Outlook: Bullish Bias Intact

Gold’s ability to recover intraday losses and hold near $3,350 suggests dip-buying remains active. Technical indicators signal continued upside potential, especially with the USD on the defensive and market volatility increasing.

Explore More Gold Insights on Tredu:

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