gold prices have shown resilience early Monday, rebounding from monthly lows near $3,250 amid ongoing geopolitical and economic uncertainties. The precious metal is benefiting from a broadly weakened US dollar, which has lingered near multi-year lows established last week, providing some support for gold ’s recovery.
The US dollar remains under pressure due to multiple factors, including dovish expectations for Federal Reserve policy. Market participants are closely monitoring signals from Federal Reserve officials, with futures markets pricing in a higher likelihood of interest rate cuts later this year. Such expectations tend to bolster gold , given its status as a non-yielding asset favored during periods of low or declining real interest rates.
Trade tensions and political developments also continue to influence market sentiment. Uncertainty over US trade negotiations with Japan persists, alongside President Trump’s ambiguous stance on the passage of key spending legislation. Meanwhile, renewed optimism emerged around relations with China and Canada, following successful resolutions to some trade disagreements, such as the resolution of issues concerning rare earth minerals and efforts to rescind digital taxes.
Technically, gold remains under pressure, having recently broken below the critical $3,297 level, which corresponds with the 50% Fibonacci retracement of recent gains. Despite a brief bounce, momentum indicators suggest limited upside in the short term, with the relative strength index remaining below the neutral midpoint. Upcoming U.S. economic data, including the JOLTS job openings report, alongside speeches from Federal Reserve officials, are likely to influence the metal’s near-term trajectory.
On the downside, a breach of the intraday low at approximately $3,248 could open the path toward $3,168, a level aligned with the 61.8% Fibonacci retracement. Conversely, if buyers regain momentum and push the price above $3,297, further resistance levels are seen at $3,321 and $3,350. Overall, the current environment remains volatile, reflecting both macroeconomic uncertainty and shifting monetary policy expectations.
