Insights 
VT 
Key Points:
- Gold futures dipped 0.5% to $3,332.40 per ounce.
- Traders pivot to updates on US trade negotiations with 17 partners (excluding China).
- A stronger US dollar pressures bullion, curbing its short-term appeal.
- Long-term outlook remains supported by market instability, ETF inflows, and central bank buying.
Gold prices softened during Monday’s session, with XAU/USD settling near $3,320 after failing to hold intraday highs above $3,348. The pullback reflects two key developments.
First is the temporary ease in tensions due to the US’s engagement with 17 trade partners, excluding China. Second, the greenback’s rally has made gold more expensive for international buyers.
Technical Perspective
Gold extends losses below short-term averages as downside pressure lingers, as seen on the VT Markets app
The 15-minute chart shows gold struggling below key moving averages (5,10,30), confirming short-term bearish control. Key levels to watch:
- Support: $3,305.20 (defence zone for buyers).
- Next Support: $3,280 – $3,265 if breakdown occurs.
- Momentum: MACD shows bearish bias but hints at slowing selling pressure.
While the immediate trend favours sellers, oversold conditions suggest potential for consolidation near current levels.
Long-Term Outlook
Despite the short-term pullback, gold remains up over 25% year-to-date, largely driven by volatile US policy shifts, trade friction, and a fragile macroeconomic backdrop. ING notes that gold ETF inflows and central bank reserves accumulation continue to provide robust demand undercurrents.
Moreover, extended uncertainty around US-China trade relations with broader economic instability is expected to reinforce gold’s value as a longer-term hedge.
