Gold price rises to multi-day high, nears $3,350 as USD weakness persists

Gold prices extend their recovery as concerns over worsening U.S. fiscal conditions drag the dollar to its lowest level since February 2022. Uncertainty over President Trump’s tariff policies and his pressure on the Fed for rate cuts are boosting safe-haven demand for gold, alongside weak U.S. consumer spending and rising Fed rate cut bets for September.

Additional support comes from fears surrounding Trump’s $3.3 trillion spending bill, which could widen the deficit. Traders remain cautious ahead of key U.S. data like ISM Manufacturing PMI and JOLTS, with the main focus on Thursday’s Nonfarm Payrolls report for clearer market direction.

XAU/USD TECHNICAL OVERVIEW

Technical Structure: Gold shows a mixed technical setup for the week, with a bearish broader trend but short-term bullish momentum. The monthly Doji and weekly Bearish Inside Bar highlight indecision and downside risk, while the daily bullish candle and close above the 55-SMA suggest a recovery attempt. On lower timeframes, bullish signals like the Three White Soldiers on the 4H and a Bullish Flag on the 1H support intraday buying opportunities.

Weekly Trend: Bullish to Neutral

Intraday Trend: The intraday bias remains bullish and favours the strategy of Buying on Dips and Buying on Breakout

Major Support: 3320, 3304, 3296
Major Resistance: 3350, 3360, 3375