Key Takeaways:
- Gold futures dipped by 0.5%, settling near $3,320.40 per ounce.
- Investors shift focus to U.S. trade talks with 17 countries—excluding China.
- A stronger dollar reduces demand for gold, impacting its near-term appeal.
- Long-term sentiment stays positive amid economic uncertainty and continued ETF inflows.
Gold prices retreated on Monday, dragged lower by a stronger U.S. dollar and improving risk sentiment in global markets. The yellow metal (XAUUSD) fell 0.5% and closed near $3,320, after briefly touching $3,348.56 earlier in the day.
This latest pullback followed renewed optimism over Washington’s trade negotiations—this time not with China, but with 17 other global trade partners. Analysts at ING suggest that China’s exclusion from the talks could temporarily ease geopolitical anxiety, prompting a modest rotation away from safe-haven assets like gold.
💵 Dollar Strength Weighs on Gold’s Short-Term Appeal
A firmer U.S. dollar also played a role, pressuring gold by increasing its relative cost for foreign buyers. As the greenback rebounds, it competes more aggressively as a safe-haven alternative, reducing bullion’s short-term attractiveness.
📊 Technical Outlook: Momentum Favors Bears—for Now
Gold is showing signs of short-term weakness after failing to hold above $3,353. Prices have now retreated to around $3,320. Short-term moving averages (5, 10, and 30) have turned downward, confirming a bearish setup in the near term.
🖼️ Chart: Gold trades below short-term MAs, with sellers still dominating – via VT Markets app
The MACD shows growing downside momentum, although some signs of slowing suggest that the pullback could soon pause. If bulls manage to defend the $3,305 support area, we might see a corrective bounce. If not, a deeper slide toward $3,280–$3,265 could follow.
The short-term trend remains bearish, though the market is approaching oversold territory on the 15-minute chart.
Picture: Gold extends losses below short-term averages as downside pressure lingers, as seen on the VT Markets app
🛡️ Long-Term Fundamentals Still Shine Bright
Despite Monday’s dip, gold remains one of the year’s top-performing assets—up over 25% in 2025. The metal continues to benefit from global economic turbulence, shifting U.S. trade dynamics, and ongoing central bank demand.
ING highlights that net inflows into gold ETFs remain solid, while many central banks, especially in emerging markets, are adding to reserves—supporting long-term demand.
With U.S.-China tensions still unresolved and the broader macro environment staying fragile, gold is expected to retain its appeal as a strategic hedge.
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