gold prices have continued their downward trajectory, reaching weekly lows below $3,250 early Thursday. The decline reflects persistent buying interest in the US Dollar, reignited by recent developments, including a recent ruling by a US federal court and cautious remarks in the Federal Reserve’s latest meeting minutes. As the Relative Strength Index (RSI) dips below the critical midline, support levels appear to be weakening.
The recent slump marks a continuation of a four-day bearish trend, with gold prices now teetering close to their lowest point this week. The US Dollar found renewed strength following a federal court’s decision deeming President Trump’s tariffs both illegal and unauthorized. This ruling effectively blocks broad import duties on nations that have a trade surplus with the US. Additionally, the Federal Reserve’s notes from May suggested a heightened uncertainty regarding the economic outlook, advocating for a prudent approach until the ramifications of recent policy shifts are fully understood.
Market sentiment has been buoyed by positive financial reports, particularly from technology leaders like Nvidia , which exceeded revenue expectations significantly. Their strong performance has lent additional support to the US Dollar, counteracting concerns stemming from ongoing US-China trade tensions.
Current attention is now shifting toward mid-tier economic data and speeches from various Federal Reserve policymakers, which could potentially ease pressure on gold prices. Anticipation is building ahead of Friday’s core Personal Consumption Expenditure (PCE) Price Index release — an important inflation measure — which could impact the Fed’s recent hawkish tone and initiate a rebound for gold .
From a technical perspective, sellers are gaining ground, with the RSI testing levels below 50. Unable to maintain support around $3,295 — a zone corresponding with both the 21-day Simple Moving Average (SMA) and the 38.2% Fibonacci retracement from a recent rally — gold must hold above the 50% Fibonacci support at approximately $3,230. A close below this threshold may redirect focus toward the next support level around $3,168. Conversely, a rebound could enable gold to approach the 21-day SMA near $3,287, with resistance at the $3,300 level and a significant threshold at $3,350 necessary to reclaim previous upward momentum.
