Tariff Impact
Gold prices remain weak through the middle of the week with the futures market back in the red over early European trading on Wednesday. News of the US tariff deadline extension, now pushed to August 1st, has been welcomed by markets with risk sentiment improving again. Gold, as a result, has lost ground via reduced safe-haven demand. A stronger US Dollar is also exerting downward pressure on the safe-haven metal with the market at risk of a deeper move lower on any risk-positive developments. As such, traders will be closely watching incoming headlines with news of any further trade deals with the US likely to see gold prices come under heavier selling pressure.
US Data & Fed Expectations
Away from tariff updates, traders will also be keeping an eye on incoming US data as the market seeks to gauge the prospect of near-term Fed easing. Following a better than forecast NFP print last week, July easing expectations were dashed, leading USD higher. If we see any further upside surprises in key readings, this could see September easing calls start to weaken, leading to a fuller rebound in USD. In this scenario, gold prices are vulnerable to a deeper drop lower. On the other hand, any fresh US data weakness should see stronger expectations of a cut in September, leading gold higher as USD falls.
Technical Views
Gold
Gold prices are now testing below the bullish trend line once again with focus now on the 3,254.65-level support. If this level breaks, 3,164.82 will be the next level to watch, in line with weakening momentum studies readings.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.