Gold was trading near $3,350 on Tuesday, after a 1.6% drop the previous day. This decline followed news of potential peace talks between Russia and Ukraine. U.S. July CPI data showed a 0.2% MoM rise, while the annual rate held at 2.7%, slightly below the 2.8% forecast. Core CPI increased 0.3% MoM and 3.1% YoY, exceeding expectations.<\/p>\n
Gold’s recent low of $3,331 was due to increasing U.S. Treasury yields and a global risk-on sentiment. Support for gold came from a softer U.S. dollar post-inflation data release. Rising yields included the 10-year note at 4.297% and the 30-year yield at 4.885%. CPI results increased bets on a September Federal Reserve rate cut.<\/p>\n
A statement from President Donald Trump exempting gold imports from proposed tariffs eased market tensions. The potential tariffs concerned Swiss gold bars, which raised supply chain concerns. Trade sentiment improved as Trump extended the U.S.-China tariff truce by 90 days.<\/p>\n
Upcoming U.S. economic releases include the Producer Price Index and Retail Sales. Current resistance for gold is at $3,363, with support at $3,320. The moving averages indicate a negative short-term momentum, with the RSI around 37 signalling possible further declines.<\/p>\n
We are seeing gold prices hover near $3,350, caught between the prospect of geopolitical calm and changing U.S. interest rate expectations. The market is reacting to potential Russia-Ukraine peace talks, now reportedly scheduled for later this month in Geneva, which is dampening safe-haven demand. This creates a tense environment where headline risk is exceptionally high.<\/p>\n
The recent inflation data has significantly shifted market focus towards a September Federal Reserve rate cut. We’ve seen the probability of a cut, as tracked by the CME FedWatch tool, jump to over 75% in the wake of the CPI report. This expectation is putting a ceiling on the U.S. dollar, providing a floor for gold prices despite rising Treasury yields.<\/p>\n
Looking back, we saw a similar pattern in late 2023 when markets began pricing in the end of the Fed\u2019s tightening cycle. Gold initially dipped on high prevailing yields before embarking on a sustained rally. This historical precedent suggests the current weakness could be a buying opportunity for those with a longer-term bullish view.<\/p>\n
For now, short-term momentum appears negative, creating opportunities for bearish derivative plays. The latest Commitment of Traders report shows that large speculators have been reducing their net-long positions in gold futures for two consecutive weeks. This aligns with the RSI technical indicator sitting at a low 37, signaling there may be more room to fall before we find a bottom.<\/p>\n
Investor sentiment in gold-backed ETFs confirms this caution, with preliminary data showing net outflows of around 15 tonnes in the first week of August 2025. We should watch the $3,320 support level closely, as a decisive break below it could trigger further stop-loss selling. This could be a tactical level to enter short positions or buy put options.<\/p>\n
All eyes are now on the upcoming Producer Price Index and Retail Sales data. A strong retail sales figure could challenge the September rate cut narrative and send gold lower, while weak numbers would likely accelerate buying. We should remain nimble to trade the volatility these releases will bring later this week.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold nears $3,350 amid peace talks, inflation data, rising yields, and easing trade tensions from Trump.<\/p>\n","protected":false},"author":62,"featured_media":16981,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-28882","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/28882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=28882"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/28882\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16981"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=28882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=28882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=28882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}