Trump’s fresh tariff threats, including a 50% duty on copper starting 1 August, add new layers of economic uncertainty. The potential inflationary impact of these policies raises concerns within the Fed, though most officials still expect rate cuts later this year. Moreover, the US Dollar remains weak, and its rebound is likely to remain limited below 100.50. However, a break above 100.50 would likely extend the rally in the US Dollar Index.
Gold Technical Analysis
XAUUSD Daily Chart – Ascending Triangle
The daily chart for spot gold indicates that the price is consolidating within an ascending triangle and remains in an uncertain zone, despite forming a bullish price pattern. The price is consolidating around the 50-day SMA, and this consolidation has resulted in a drop in the RSI below the 50 level. As a result, gold has entered a neutral zone, and a strong rebound is needed to ease the current consolidation patterns.
A recovery above $3,367 would be a positive signal and could initiate a move toward the $3,450 level. However, only a confirmed break above $3,450 would signal a strong bullish breakout for spot gold.