Gold price traded inched up on Wednesday with investors keeping off aggressive bets amid the first 24 hours of ceasefire in the Middle East. The XAUUSD pair was at $3,326 per ounce at the spot market, up by 0.02% in the European session at press time. The US dollar index is still near ten-day lows, with the DXY index at 98.08 at the time of writing. However, yields on benchmark 10-year treasury bonds were up by 5 basis points, providing support to the greenback.
Federal Reserve Chairman Jerome Powell has been issuing hawkish policy statements, hinting at retaining the current interest rates for longer. Powell will continue giving his congressional speech on Wednesday, and his statement could provide insights into the XAUUSD trajectory in the coming weeks.
Meanwhile, the ongoing NATO summit in the Hague could bring fresh impetus to the geopolitical perspective of gold price, with potential comments on Iran’s nuclear program and negotiations with the United States. Looking ahead, US Q1 GDP data and Monthly Durable Goods Orders set for release on Thursday could bring fresh volatility in the XAUUSD pair’s near-term trajectory. The medium-term outlook will likely be primarily dependent on US trade tariff communication as the 90-day suspension period comes to pass on July 9.
Gold Price Prediction
The momentum on gold price calls for an extended downside if action stays below $3,332. With the sellers in control, the XAUUSD trading pair will likely find initial support at $3,317. Breaking below that level will signal a stronger support that could push the action lower to test $3,300.
Alternatively, breaking above $3,332 will signal bullish control. That could see initial resistance encountered at $3,348. The downside narrative will be invalid if the price breaks above that level. Furthermore, a stronger momentum could push the action higher and test the second barrier at $3,367.
