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<\/p>\nGold remains supported as US-EU trade talks near August 1 deadline and tariff threats persist.The US Dollar faces additional pressure due to rising concerns over Fed independence.XAU\/USD bulls fail to clear $3,400, consolidation persists after minor pullback.<\/p>\n
Gold (XAU\/USD) is edging lower after a sharp rally on Monday. Trade tensions and concerns about the Federal Reserve\u2019s (Fed) independence continue to lend support through safe-haven demand.<\/p>\n
The precious metal is hovering just below the $3,400 level at the time of writing on Tuesday, facing resistance to further gains. Recent investor flows into alternative assets, such as Bitcoin and US equities, are capping the upside momentum.<\/p>\n
Trade talks and Fed independence remain in focus, limiting Gold\u2019s decline<\/p>\n
The likelihood of a trade deal between the EU and the US before the August 1 deadline is fading, and investors are growing increasingly wary.\u00a0<\/p>\n
This uncertainty, along with broader trade tensions involving key US partners, remains a major theme supporting Gold’s appeal as a safe-haven asset.<\/p>\n
Adding to market unease are renewed concerns about the Fed\u2019s independence. US Treasury Secretary Scott Bessent spoke with CNBC on Monday and commented on the matter.\u00a0<\/p>\n
He suggested that it may be time to \u201cexamine the entire institution and whether they\u2019ve been successful.\u201d He has also proposed a review of the Fed\u2019s non-monetary functions, citing issues like \u201cmission creep\u201d and cost overruns in building renovations.\u00a0<\/p>\n
The Fed\u2019s independence from political influence is a key pillar of the central bank’s credibility.\u00a0When that independence is called into question, investors fear that monetary policy could become motivated by factors other than data-driven considerations, weakening confidence in the US Dollar.<\/p>\n
While Gold traditionally benefits from economic uncertainty and risk aversion, recent developments have limited its upside.\u00a0<\/p>\n
Rising institutional interest in Bitcoin, amid improving regulatory clarity, has drawn some safe-haven flows away from the precious metal.\u00a0<\/p>\n
At the same time, US equities, particularly tech stocks, remain attractive to investors anticipating Fed interest rate cuts.\u00a0<\/p>\n
These competing inflows into alternative assets are acting as a headwind for bullion, even as uncertainty remains elevated.<\/p>\n
Daily digest market movers:\u00a0US-EU trade talks near deadline as tariff threats persistTalks between the United States and the European Union have dragged on in recent weeks, with little sign of real progress. US President Donald Trump has floated the idea of imposing a sweeping 30% tariff on most EU imports as part of his push to narrow the trade deficit. The US imports more goods from the EU than it exports, though when it comes to services, the opposite holds true.\u00a0Trade negotiations are currently underway in Brussels and Washington as officials work to finalize proposals and fallback strategies in a final effort to prevent a sharp escalation in transatlantic tensions. The talks bring together senior representatives from the European Commission\u2019s trade team, led by Trade Commissioner Maro\u0161 \u0160ef\u010dovi\u010d and US counterparts including Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.The European Union is preparing a package of retaliatory tariffs, in case negotiations don’t succeed, targeting key American exports, including digital services, aerospace products, and bourbon.\u00a0 Even if a deal is reached, the US plans to keep baseline tariffs of 15\u201320% on EU goods, along with sector-specific levies on steel, copper and auto parts. Trump has also indicated that tariffs on pharmaceuticals and semiconductors may be implemented soon. The economic uncertainty could support Gold demand as a safe-haven asset.Over the weekend, Howard Lutnick struck a more optimistic tone regarding US-EU talks during an interview with CBS News. \u201cThese are the two biggest trading partners in the world, talking to each other. We\u2019ll get a deal done. I am confident we\u2019ll get a deal done,\u201d he said. Still, Lutnick made it clear that there\u2019s no room for delays. \u201cThat\u2019s a hard deadline\u2014so on August 1, the new tariff rates will come in.\u201dThe Fed is currently in a blackout period prior to the July 30 interest rate decision, and no further comments on monetary policy are expected to be provided by Fed officials until then. However, despite ongoing criticism from the US president, who has called for the resignation of Fed Chair Jerome Powell, the majority of the central bank’s members have remained reluctant to cut rates until the clear inflation pressures from tariffs are evident.\u00a0Gold technical analysis: Bulls fail to clear $3,400, consolidation persists after minor pullback<\/p>\n
On the technical front, Gold is showing signs of consolidation after being rejected at the $3,400 level, an important psychological and resistance zone. <\/p>\n
The metal continues to trade above the symmetrical triangle pattern, indicating that the breakout remains intact despite a minor pullback. For bullish continuation to be possible, Gold needs a clear hold above $3,400 and a move above the June 16 high of $3,452 to open the door then for a potential retest of the April 22 record high of $3,500.<\/p>\n
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Gold daily chart<\/p>\n
In contrast, key support is seen near the 23.6% Fibonacci retracement level of the April low-high move at $3,372, with a move lower bringing the 50-day Simple Moving Average (SMA) at $3,330 back into play. The next supports are currently provided by the $3,300 psychological level and the 50% Fibonacci retracement at $3,228, although a break below $3,292 would suggest a deeper correction.<\/p>\n
The Relative Strength Index (RSI) at 58 reflects moderate bullish sentiment, though momentum follow-through is currently lacking.<\/p>\n
Gold FAQs<\/p>\n
Gold has played a key role in human\u2019s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn\u2019t rely on any specific issuer or government.<\/p>\n
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country\u2019s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.<\/p>\n
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.<\/p>\n
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU\/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up. <\/p>\n
Disclaimer: For information purposes only. Past performance is not indicative of future results.<\/p>\n","protected":false},"excerpt":{"rendered":"Gold remains supported as US-EU trade talks near August 1 deadline and tariff threats persist.The US Dollar faces…\n","protected":false},"author":2,"featured_media":15520,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[84,467,56,54,55],"class_list":{"0":"post-15519","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/15519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=15519"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/15519\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/15520"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=15519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=15519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=15519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}