VT 
Gold is seeing a cautious rebound, supported by a softer US dollar and low Treasury yields. But with traders showing less concern over trade tensions, momentum remains limited. This analysis explores the key drivers behind gold’s recent moves.
Gold edges up as dollar eases
Gold prices edged slightly higher on Thursday, supported by a mild retreat in both the US dollar and Treasury yields.
However, gains remained limited as traders showed little reaction to the latest aggressive trade manoeuvres by former President Donald Trump.
Spot gold inched up by 0.3% to $3,322.46, while US gold futures advanced to $3,331, rebounding gradually from this week’s low of $3,282.74.
Despite ongoing geopolitical tensions, market momentum remained subdued – indicating a cautious investor stance.
Tariff headlines intensify, but market reaction dulls
Donald Trump accelerated his trade offensive, announcing fresh 50% tariffs on US copper imports and imposing new duties on Brazilian products, scheduled to take effect from 1 August.
Additionally, seven more nations were added to the growing list of tariff-targeted countries, joining the likes of Japan and South Korea.
Yet markets showed minimal response. Analysts attribute this to increasing “tariff fatigue” – a growing indifference among investors to continuous protectionist announcements, which now have a diminished influence on asset prices.
Technical analysis
Gold posted a modest rebound, closing at $3,319.48 with an intraday rise of 0.54%.
The price recovered from the session’s low of $3,282.74, and the chart pattern now shows a series of higher lows and highs, hinting at building bullish momentum.
Short-term moving averages (5-, 10-, and 30-period) are aligned in a bullish crossover, reinforcing the potential for further upside.
Picture: Gold recovers above 3315, but resistance looms near 3330, as seen on the VT Markets app.
Meanwhile, the MACD has shifted into positive territory above the zero line.
However, flattening histogram bars suggest waning momentum as prices approach a possible resistance zone near $3,325–$3,330 – a level that previously served as support and now presents a technical hurdle.
Fed minutes reveal cautious stance on rate cuts
The minutes from Wednesday’s Federal Reserve meeting revealed limited appetite for immediate rate cuts.
Only a few members supported easing as early as July, with most preferring to wait, citing inflation pressures linked to tariffs.
The upcoming FOMC meeting on 29–30 July may provide the next meaningful catalyst for the gold market.
Until then, gold is likely to trade within a narrow range, influenced more by technical signals and fluctuations in the US dollar than by headline-driven fear over escalating trade conflicts.
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