Gold Climbs as Dollar Slips, Traders Eye $3,390 After Holding $3,323 Support
Gold prices trade bullish on Friday, rebounding from a midweek pullback and directing toward a weekly gain. The catalyst? A weakening...
Quick overview
- Gold prices are rebounding due to a weakening U.S. dollar and increased safe-haven demand amid trade policy uncertainties.
- President Trump's upcoming trade deal deadline and new tax-cut package are contributing to market unease and fueling gold demand.
- U.S. job data shows mixed results, with strong government hiring but weak private-sector growth, leading to cautious Federal Reserve rate-cut expectations.
- Technically, gold is holding steady above key support levels, with traders advised to watch for confirmation before entering long positions.
Gold prices trade bullish on Friday, rebounding from a midweek pullback and directing toward a weekly gain. The catalyst? A weakening U.S. dollar and safe-haven demand sparked by fiscal and trade policy uncertainties. The dollar index (DXY) slipped 0.2% and marked its second consecutive weekly decline, making dollar-denominated gold more attractive to international buyers.
Much of the market’s unease stems from U.S. President Donald Trump’s looming July 9 deadline for updated trade deals. Trump confirmed Friday that the U.S. would begin formally notifying countries about a shift in trade strategy—prioritizing broad tariff letters over individual deals. While initial tariff proposals in April called for rates as high as 50%, most were delayed or trimmed to 10% to give room for talks. That window now appears to be closing.
Adding to uncertainty, Trump’s new tax-cut package passed Congress this week. It cements his 2017 tax reforms, adds fresh campaign-era breaks, and allocates new funding for immigration enforcement. While the legislation boosts short-term liquidity, it has reignited fiscal concerns among investors, fueling the demand for gold.
Jobs Data Shows Resilience, but Fed Caution Remains
Economic data released Friday revealed a mixed picture. U.S. nonfarm payrolls for June surprised to the upside, with solid job creation. However, nearly half of those gains came from government hiring, while private-sector job growth fell to its weakest pace in eight months. That nuance led investors to scale back aggressive Federal Reserve rate-cut expectations—though the overall takeaway is that the U.S. economy is slowing, not stalling.
Gold Technical Levels to Watch: $3,323 Support, $3,390 Target
From a technical perspective, gold (XAU/USD) is holding steady at $3,335 after testing ascending trendline support near $3,323. That trendline, drawn from the June lows, has remained intact through multiple sessions, suggesting buyers are still active at lower levels.
- Key Support: $3,323 trendline and 50-period EMA at $3,333
- Resistance Levels: $3,363 and $3,390
- MACD Outlook: Bearish crossover forming; watch for momentum reversal
A clean break below $3,323 would expose downside to $3,300 and $3,274, while a bounce from current levels could push price back toward $3,363 and eventually $3,390. Traders should monitor for confirmation candles—especially bullish engulfing or hammer formations—before entering long positions.
Trade View:
Gold remains neutral-to-bullish above $3,323. The broader uptrend is intact, but fading momentum suggests patience is needed. A decisive move either side of this support zone will likely shape sentiment into next week.
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