Gold Price Slips Amid Stronger US Dollar

The gold price experienced a decline on Monday due to a strengthening US dollar, which was fueled by escalating trade tensions and speculation about a potential Federal Reserve rate cut. Gold fell to $2,753, retreating from its previous high of $2,786, while silver traded at $30.24.

Analysts note that the outlook for gold remains uncertain, as concerns over trade policies counterbalance optimism about potential easing by the Federal Reserve. The US dollar gained 0.25%, increasing pressure on gold and silver prices. Key levels to watch include $2,736 for gold and $29.75 for silver, with resistance at $2,782 and $30.61, respectively.

Market sentiment remains mixed, with some analysts expecting rate cuts to support gold prices, while others anticipate trade policy concerns to weigh on the metal. The gold price has recovered a major part of its intraday losses and trades around the $2,760 area, with a mild negative bias. The USD recovery is capped by Fed rate cut bets and sliding US bond yields, while renewed trade war fears limit losses for the XAU/USD pair.

The US Dollar upsurge, spurred by reviving concerns about US President Donald Trump's trade policies, prompted some selling around the gold price. The imposition of emergency 25% tariffs on all goods coming from Colombia, amid fears of a trade war, has contributed to the decline in gold prices. However, sliding US Treasury bond yields, amid bets that the Federal Reserve will cut interest rates twice this year, lend support to the gold price.

Traders now look to the US economic docket, featuring Durable Goods Orders, the Conference Board's Consumer Confidence Index, and the Richmond Manufacturing Index, for a fresh impetus. Any subsequent slide below the $2,750-2,748 zone is likely to find support near the $2,736 area, ahead of the $2,725-2,720 strong resistance breakpoint.