- Gold is supported by the fall in US treasure yields despite a firm US dollar.
- Fed minutes show broad support for at least one rate cut in 2025.
- Trump points to the nations aligned with BRICS with new tariff warnings of 10%.
The price of gold records decent profits on Wednesday as the US treasure yields go back, although the dollar is solidly traded against their peers. Commercial developments continued to dictate the market management, while the latest minutes indicate that officials are still considering a rate cut in 2025. At the time of writing, the Xau/USD is quoted at $ 3.312, with an increase of 0.31%.
The Fed minutes showed that most officials see a rate cut in the FED fund rate this year as appropriate, while a couple is considering a reduction in July, if the data evolves as expected.
The White House continues to advise the minor and older commercial partners, releasing the last lot of letters to countries such as the Philippines, Moldova, Algeria, Iraq, Libya, Brunéi and Sri Lanka. Tariffs were established by around 20% to 30% for the mentioned countries.
On Wednesday, US President Donald Trump emphasized that it would apply 10% additional tariffs to countries that are aligned with BRICS anti -American policies.
The data of the Chicago Board of Commerce revealed that market participants are looking at 50 basic points (PBS) of relief in 2025.
What moves the market today: the price of gold shoots while the White House announces another lot of cards
- The alcista gold trend remains intact, since it remains above a strong support about $ 3,250. The fall in US treasure yields drove yellow metal. The 10 -year Treasury bonus yield from the US falls six basic points to 4,342%. The real US yet yields are also lowering six PBS to 1,992%. The US dollar index (DXY), which tracks the yield of the dollar against a foreign exchange basket, remains flat at 97.51.
- FOMC minutes showed that some Fed officials do not see a rate cut in 2025, citing that inflationary pressures remain high, along with the increasing inflation expectations and ongoing economic resilience. All participants considered that the current policy rate is appropriate. The participants agreed that the risks of stagflation have decreased, although they remain high.
- Washington revealed tariffs to the Philippines (20%), Moldova (25%), Algeria (30%), Iraq (30%), Libya (30%), Brunéi (25%), Sri Lanka (30%) and, finally, Brazil (50%).
- Trump once again criticized the president of the Federal Reserve, Jerome Powell, adding that the Central Bank needs to cut rates at least 3%. He made copper prices rise to threatening to impose a 50% tariff on red metal.
- Although the Xau/USD is still pressed, the World Gold Council (WGC) announced that the Golden ETFs attracted the highest capital entrance in five years during the first half of 2025. “The Golden ETFs registered an entry of 38,000 million dollars in the first half of 2025, with their collective holdings increasing by 397.1 metric tons of gold.” Total holdings at the end of June increased to 3,615.9 tons, the largest since August 2022.
- The PBOC revealed that it added 70,000 ounces, which means that the central bank’s gold reserves increased by 1.1 million ounces since purchases resumed last November.
Xau/USD technical perspective: The price of gold clings above $ 3,300
The bullish bias of the price of gold remains intact, although it will face a strong short -term resistance. Although the Relative Force Index (RSI) points up, remains bassist, indicating that exceeding the resistance level of the simple mobile average (SMA) of 50 days at $ 3,319 would be difficult to achieve. In that case, the next ceiling level would be the 20 -day SMA at $ 3,345, $ 3,350 before $ 3,400.
On the contrary, if the XAU/USD falls below $ 3,300, the first support would be the minimum of June 30, $ 3,246 to pave the road to a greater fall, with the 100 -day SMA at $ 3.185 in view, followed by the minimum of May 15, $ 3,120.
GOLD – FREQUENT QUESTIONS
Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.
Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.
The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
