Gold Rebounds to $3,266 as Traders Eye $3,347 Breakout Opportunity

Gold up on Tuesday as investors buy the dip after week-long selloff. US and China reach 3-month tariff truce.

Gold prices rose to $3,266 on Tuesday as investors took advantage of a short-term dip following a week-long selloff. The rebound came after the US and China agreed to reduce their tariffs in Geneva. The US cut tariffs on Chinese goods from 145% to 30% and China lowered its tariffs on US imports from 125% to 10%. This lifted global equities but temporarily weakened gold’s safe-haven appeal and sent prices to a one-week low before bargain hunters stepped in.

“There’s some value-buying happening at these levels,” said Tim Waterer, Chief Market Analyst at KCM Trade. “That’s supporting gold, even as global growth sentiment improves.”

The dollar pause also helped gold regain some ground especially as traders awaited the latest US CPI inflation data. A downside surprise could soften the dollar and boost gold.

Fed Outlook Supports Gold’s Rebound

Fed Governor Adriana Kugler said the tariff deal reduces the need for rate cuts. But markets still expect the Fed to start cutting in September with 55 basis points priced in for 2025.

Gold tends to do well in a lower rate environment as it reduces the opportunity cost of holding non-yielding assets like bullion. Traders are watching inflation data closely – any miss to the downside could be a green light for gold bulls.

Citi revised its 0–3 month gold price target to $3,150 and expects consolidation between $3,000 and $3,300 in the near term.

Gold Technical Levels to Watch

From a technical perspective, gold (XAU/USD) is trying to break out of its descending channel, currently trading just below its 50-day EMA at $3,291.

Key levels to watch:

• Support: $3,204

• Resistance: $3,301

• Breakout target: $3,347

The MACD has started to cross up, suggesting a possible momentum shift. A close above $3,291 could confirm this and trigger a move to $3,347.