Gold holds gains amid cautious sentiment and subdued Dollar ahead of US PPI

Gold prices are struggling to hold gains despite a recent rebound, as the US Dollar remains firm following a seventh straight day of gains. The Dollar strength is underpinned by rising Treasury yields and June CPI data showing inflation at 2.7% y/y, reinforcing expectations that the Fed may delay rate cuts. Hawkish Fed sentiment, Trump’s trade deal with Indonesia, and rising Japanese bond yields have also contributed to USD strength, pressuring gold.

However, uncertainty over Trump’s broader trade policy and Fed Chair Powell’s tenure have capped further USD upside for now. Traders remain cautious ahead of key US PPI data; a stronger-than-expected print could fuel further USD gains and drag gold lower, while ongoing trade developments continue to influence risk sentiment.

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: Gold is showing signs of near-term strength, with prices sustaining above the 55-day SMA and trading just above the 20-day SMA on the daily chart—indicating a mildly bullish bias in the broader structure. On the 4H timeframe, an Inverted Hammer pattern suggests a possible reversal attempt from recent lows, although price action remains consolidated on the 1H chart, reflecting indecision among traders.

Weekly Trend: Neutral

Intraday Trend/ Intraday Strategy: Bullish to Neutral bias; prefer buying near key support zones and selling into resistance levels.

Major Support: 3320, 3311, 3295
Major Resistance: 3350, 3375, 3392