Gold price hovers near $3,300 amid Fed caution and weak safe-haven demand

Gold (XAU/USD) remains under pressure near $3,300 during Tuesday’s European session, following a four-day sell-off. The decline is driven by reduced safe-haven demand after the US-EU tariff deal, which eased global trade war concerns. At the same time, the US Dollar strengthened, with the DXY climbing near 99.00—its highest in a month—making gold more expensive for investors.

Markets now await the Federal Reserve’s policy decision on Wednesday, where rates are expected to remain unchanged at 4.25%–4.50% for the fifth consecutive meeting. The prospect of higher-for-longer interest rates continues to weigh on gold, as it offers no yield compared to rising returns on USD-denominated assets.

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Gold (XAU/USD) is exhibiting a weak technical structure, trading just below the key $3,300 level. On the weekly chart, a Shooting Star candlestick signals selling pressure at higher levels, confirming a bearish tone. The daily chart shows a Doji, reflecting indecision but also a potential pause before further downside. Price action remains below the 20-day SMA, reinforcing bearish momentum.

On the 4-hour chart, a bearish flag pattern suggests continuation of the prior downtrend, while the 1-hour chart indicates sideways consolidation, hinting at a possible breakout ahead.

Weekly Trend: Bearish

Intraday Trend/ Intraday Strategy: The intraday trend remains bearish to neutral and favours the strategy of Selling on Resistance and Buying on Support

Major Support: 3310, 3285, 3265
Major Resistance: 3330, 3350, 3375