Gold (XAU/USD) has stabilized near $3,300/oz after a four-session decline from its recent peak of $3,440/oz, signaling renewed dip-buying interest at a key psychological support level.
The earlier pullback was driven by improved risk sentiment following progress in U.S. trade negotiations with Japan, the EU, and India, which temporarily dampened demand for defensive assets.
However, the precious metal’s medium-term outlook remains bolstered by persistent geopolitical risks including escalating Ukraine tensions and Middle East instability alongside shifting expectations for Federal Reserve rate cuts later this year.
This week’s U.S. economic data releases, including Q2 GDP, core PCE inflation, and Nonfarm Payrolls, will be critical in shaping gold’s trajectory. Softer figures could reinforce bets on monetary easing, supporting prices, while stronger data may revive short-term selling pressure.
Despite near-term volatility, gold’s role as a hedge against geopolitical shocks and potential policy shifts maintains its strategic appeal for investors navigating an uncertain global landscape.
