17/07/25

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Gold prices experienced a slight decline amid the emergence of fresh US dollar buying on Thursday. The dollar continued to benefit from declining expectations of an immediate Federal Reserve rate cut, supporting the greenback’s strength across markets. Nonetheless, ongoing trade-related uncertainties appear to be providing some support for gold’s status as a safe-haven asset, thereby limiting steep declines.

Earlier in the session, gold surged to a three-and-a-half-week high, reaching approximately $3,377. The move was driven by market jitters over reports that US President Donald Trump was contemplating removing Federal Reserve Chair Jerome Powell. The uncertainty was heightened by fears of political interference in the central bank’s independence. However, these fears eased after Trump indicated that he was unlikely to take such action, which alleviated some of the volatility. The ensuing stabilization allowed the U.S. dollar to regain some ground, which in turn capped gold’s gains.

On the economic front, U.S. producer prices in June did not meet expectations, remaining flat and signaling a slowdown in manufacturing inflation. Despite this, comments from Federal Reserve officials suggest that the central bank is unlikely to begin cutting interest rates before September. This led to some additional USD buying, further pressuring gold prices during the European trading session.

Market participants continue to price in the possibility of a 50 basis point easing in monetary policy this year, especially given concerns surrounding the economic implications of recent trade tensions. Trump has announced tariffs on US copper imports and notified numerous countries about new tariff rates starting August 1, raising prospects of increased trade friction and economic headwinds. These developments keep gold supported as a safe haven amid geopolitical and economic uncertainties.

Technically, gold remains within a broad range established since the beginning of the month. The formation of a rectangle chart pattern indicates market indecision, with cautious signals from the daily oscillators. Support levels are identified around $3,322–$3,320, with further declines potentially targeting last week’s low near $3,248. Conversely, bulls are awaiting confirmation of strength above $3,366 to push toward the $3,400 region and beyond, aiming for resistance near $3,435. Traders will be watching upcoming U.S. economic data releases and Federal Reserve communications for additional directional clues.