Gold Struggles Below $3,300 as Dollar Strength Pressures Bullish Rebound

Gold (XAU/USD) is hovering around $3,295 on Thursday, heading for a weekly loss as dollar strength continues to cap any upside...

Written by: Arslan Butt • Friday, August 1, 2025 • 2 min read

• Last updated: Friday, August 1, 2025

Quick overview

Gold (XAU/USD) is currently around $3,295, facing a weekly loss due to dollar strength.
Technical indicators show gold is in a descending channel, with resistance at $3,333 and support at $3,268.
Bulls are struggling to maintain momentum above $3,290, and the RSI indicates a lack of buyer conviction.
Traders should wait for a breakout above $3,301 or a breakdown confirmation before making trades.

Gold (XAU/USD) is hovering around $3,295 on Thursday, heading for a weekly loss as dollar strength continues to cap any upside. A strong US economic outlook, backed by strong GDP and delayed rate cut expectations, has pushed the dollar higher – making gold more expensive for foreign buyers. According to a Reuters report, the dollar is holding near a three-week high – making gold’s recovery even tougher.

On the technicals, gold is stuck in a well-defined descending channel on the 4-hour chart. Bulls tried to push above $3,300 but couldn’t sustain the momentum. Price is below the 50-period Simple Moving Average at $3,345 and horizontal resistance at $3,333 is capping gains. With sentiment driven more by macro headlines than safe-haven bids, gold is vulnerable in the short term.

Gold Technical Levels Show Bearish Bias

Bulls have tried to stabilize price above $3,290 but the structure is weak. RSI has moved up from oversold but still below the 50 line – showing buyers lack conviction. Recent candles are showing indecision with spinning tops and dojis forming near the lower channel – a classic sign of hesitation at key support.

Unless price breaks above $3,301 and reclaims $3,333, bearish momentum remains intact. 50-SMA is acting as dynamic resistance and failure to cross above it means sellers are in control. Traders should wait for a bullish RSI crossover and strong candle confirmation before going long.

GOLD Price Chart - Source: Tradingview — GOLD Price Chart – Source: Tradingview

Key levels to watch:

Immediate support: $3,268
Next support: $3,243 then $3,212
Resistance: $3,301 and $3,333

What to Watch Next

Gold is bearish until it breaks the channel. Until then, the path of least resistance is down. Macro drivers – dollar strength and Fed policy – will be in control. Gold could bounce short term if a key support level triggers a technical reaction.

Takeaways:

Price is bearish as long as XAU/USD is below $3,333
RSI below 50 means limited upside
Wait for breakout or breakdown confirmation to trade.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.