Gold Price Nears $3,275 as Traders Eye Fed Cuts and $3,319 Breakout Target

Gold is looking strong at $3,265 as the dollar weakens and the Fed decision looms. The dollar index (DXY) is down 0.3% making gold more attractive to global investors. Timing couldn’t be more perfect after the strong jobs report in April.

CME FedWatch has traders pricing in 80 basis points of rate cuts this year with July as the likely start. Low rates are good for gold. As a non-yielding asset, gold does well when rates fall and cash returns decline.

On the geopolitical front, US-China trade is back in the spotlight. President Trump said Sunday he wants “fair trade” with China and has no plans to fire Fed Chair Jerome Powell before his term ends in 2026 and is still pushing for rate cuts.

Traders Watch $3,275 Level Closely

From a technical standpoint, gold is right at a confluence zone. Price is touching the 50-period exponential moving average (EMA) at $3,266 and the descending trendline that’s capped recent rallies. The 61.8% Fibonacci retracement of the $3,202 to $3,319 move adds to the importance of this zone.

MACD is turning up but confirmation is needed. A break above $3,275 could open up $3,294 and $3,319—a range that’s been tested multiple times recently.

Key Levels to Watch:

• Resistance: $3,275 → $3,294 → $3,319

• Support: $3,247 → $3,230 → $3,202

• EMA (50): $3,266

• MACD: Turning up but early

Gold Trade Setup

This is a breakout setup for traders who want confirmation before entering. If price breaks and holds above $3,275 on good volume, bulls may come in with momentum to push price to recent highs. But if rejected here, gold may slide to $3,230 support.

Trade Setup:

• Entry (Bullish): Break and close above $3,275

• Target (Upside): $3,294 → $3,319

• Entry (Bearish): Close below $3,247

• Target (Downside): $3,230 → $3,202

• Stop Loss: Beyond the breakout or breakdown wick

Trade Tip: Let the candle close above or below the level before entering. Volume confirmation is key to filter out false moves especially near trendlines.