Gold (XAU/USD) remains under pressure near $3,300 after a four-day decline, as reduced safe-haven demand follows the US-EU tariff agreement. The deal has eased global trade war fears, weakening gold's appeal. Meanwhile, the strengthening US Dollar—boosted by fading supply chain concerns—makes gold more expensive for foreign buyers, further weighing on prices.

The US Dollar Index (DXY) climbed near 99.00, its highest in a month, adding to gold’s headwinds. Investors now focus on the Federal Reserve's policy decision, with expectations that interest rates will remain unchanged for the fifth consecutive meeting. However, the prospect of prolonged higher rates continues to dampen sentiment for non-yielding assets like gold.

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: Gold is showing signs of cautious recovery after a recent pullback, with price action forming a Doji breakout on the daily chart—indicating indecision but potential for a directional shift. The metal is currently trading below the 20-day SMA, reflecting underlying weakness in the medium term. However, a bullish flag pattern on the 4-hour chart suggests consolidation before a potential breakout, while the 1-hour timeframe shows range-bound consolidation, signaling indecisiveness ahead of key economic events.

Weekly Trend: Neutral