The gold price moved higher on Monday morning in Europe after hitting a one-month low last week. The reason? A softer US Dollar and growing hopes that the US Federal Reserve might cut interest rates sooner than expected.
When the Dollar gets weaker, gold becomes cheaper for people holding other currencies. That makes it more attractive to buy, especially for foreign investors. And that’s exactly what we’re seeing now.
Trade Talk Optimism Sparks Gold’s Comeback
Investors are feeling hopeful again. The US is close to signing new trade deals with more than a dozen major partners. According to Bloomberg, the agreements could be done by July 9, which has given markets a confidence boost.
At the same time, tensions in the Middle East and Asia have cooled. A ceasefire between Israel and Iran, plus lower fears about war with China, have made the market less nervous. That usually means less demand for safe-haven assets like gold—but the falling Dollar is keeping the shine on.
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Fed in Focus: What Will They Say Next?
All eyes are now on what the Fed speakers will say later today. Atlanta Fed President Raphael Bostic and Chicago Fed President Austan Goolsbee are expected to speak. Traders want clues about when rate cuts might happen.
Recent US economic data shows personal spending fell by 0.1% in May, while personal income dropped 0.4%—the biggest fall since September 2021. That slowdown adds pressure on the Fed to act.
What the Charts Say About Gold Price
Technically, the gold price still looks strong in the long term. It is trading above the key 100-day EMA, which shows a bullish trend.
But in the short term, the 14-day RSI is below 50, which hints at a possible dip ahead. If gold can break above $3,350, it might climb toward the $3,400 mark. If it falls, support lies at $3,170. Below that, $3,120 is the next key level.
The gold price is up, but risks remain. If the Fed stays cautious or geopolitical tensions return, things could shift fast. Still, the mood is lighter for now—and gold is shining again.
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