- Gold price has a lot going its way with the US dollar index near three-year lows ahead of high-impact US employment data.
Gold prices are up for the second successive session on Tuesday, riding on broader US dollar weakness to reclaim some traction after a sharp drop in the previous two weeks. The yellow metal traded at $3,338 per ounce at the time of writing, up by 1% on the daily chart. While the Israel-Iran ceasefire has taken the geopolitical risk premium from gold price, there remains an element of uncertainty around Iran’s nuclear negotiations with the United States, and that provides some support.
The US dollar has declined to near three-year lows against leading global currencies, eating away a portion of its safe haven weight. The DXY index which weighs the greenback against six other popular currencies was at 96.48 as of this writing. However, with the July 9 deadline for trade negotiations with the US approaching, trade tariffs also provide some support for gold. That could get stronger in the coming days as investors weigh comments from top officials in the Trump administration.
US macroeconomic data will also weigh in, with a particular focus on Non Farm Payrolls (NFP), unemployment rate and hourly wages. In the intervening period, PMI data and Fed Chairman Jerome Powell’s speech could add some impetus. Powell faces increasing pressure from President Donald Trump, who wrote him a letter on Monday, criticizing him for being “as usual too late” to slash interest rates.
Gold Price Prediction
Gold price pivots at $3,332 and action above that level favours the buyers to stay in control. The price will likely meet the first resistance at $3,342, but a stronger momentum could breach that barrier and send the XAUUSD pair higher to test $3,350.
Alternatively, going below $3,332 will shift the momentum to the downside. In that case, gold price will likely find initial support at $3,323. Breaking below that level will invalidate the upside narrative. In addition, an extended control by the sellers could push the action lower and test $3,310.
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