Stronger Dollar weighs on Gold amid Fed doubts and sticky inflation

Gold prices (XAU/USD) are sliding after hitting multi-week highs, pressured by a stronger US dollar and reduced safe-haven demand. President Trump denied rumors of firing Fed Chair Powell, while markets increasingly expect the Fed to keep interest rates elevated. This has pushed the dollar near its highest level since June 23, weighing on the non-yielding yellow metal. A positive tone in equity markets is also denting gold's appeal, though uncertainty around Trump’s trade stance is keeping bearish bets in check.

Market analysts warn that gold’s recent lack of upward momentum could trigger fresh selling. Lower-than-expected inflation data hasn't eased long-term concerns, which may force the Fed to stay cautious. A strong dollar and rising bond yields may act as headwinds for gold in the short term. Key support levels lie at $3,320 and $3,300, while resistance is seen at $3,350, $3,400, and $3,430. Any escalation in trade tensions could still revive safe-haven demand, but for now, gold remains range-bound and under pressure. 

XAU/USD TECHNICAL OVERVIEW 

Technical Structure: Gold is exhibiting mixed technical signals. On the daily chart, a rejection candle has formed near resistance while price continues to hover slightly above the 20-SMA, indicating indecision. The 4H chart shows consolidation, reflecting a pause in momentum. Meanwhile, the 1H timeframe displays a bearish flag pattern, hinting at a possible downside continuation if support levels break.

Weekly Trend: Neutral

Intraday Trend/ Intraday Strategy: Bullish to Neutral — consider buying near support and selling near resistance

Major Support: 3325, 3300, 3285
Major Resistance: 3350, 3375, 3392