Globally, spot gold held steady at $3,287.65 per ounce as of early Friday (August 1) trade, but is down about 1.5% for the week. US gold futures slipped 0.3% to $3,337.20 per ounce.
A stronger dollar weighed on the yellow metal, with the dollar index hitting its highest level since May 29. A firm greenback makes gold more expensive for buyers using other currencies.Edward Meir, analyst at Marex, noted that gold has been trading in the $3,250–$3,450 per ounce range for nearly two months. “We see it heading towards the bottom end of the range and perhaps breaking it,” he said, citing the dollar’s strength and the US Federal Reserve’s hawkish tone as key pressures.
The Fed kept its benchmark interest rates unchanged this week at 4.25%–4.50%, dampening hopes for a rate cut in September. Gold, which does not yield interest, typically benefits when rates are lower.
Adding to market jitters, US President Trump signed an executive order imposing new “reciprocal” tariffs ranging from 10% to 41% on imports from several countries.
He also raised tariffs on Canadian goods and warned of further trade actions if talks do not progress.
“If various countries cannot renegotiate these tariff rates lower, we could see prices move higher again if trade tensions increase,” Meir said.Domestic traders expect MCX gold to stay in the ₹98,000–₹99,500 per 10 grams band on Friday (August 1), said Goodreturns.
Sandip Raichura, CEO of Retail Broking and Distribution & Director at PL Capital, said gold could see near-term weakness. “The FOMC stance on keeping rates unchanged added to the pressure… Charts indicate near-term weakness in gold and as uncertainty reduces with definitive tariff announcements, it’s likely that gold may falter in the near term, including possibly a larger pullback to $3,150–$3,200 levels per ounce,” Raichura said.
He added that only a move above $3,450 per ounce could push gold towards longer-term targets of $3,700 per ounce, but he expects that to happen only after a correction.
Jateen Trivedi, VP Research Analyst at LKP Securities, also pointed out that gold’s upside is capped for now. “Participants now turn their focus to Friday’s US Non-Farm Payrolls and unemployment data for further direction,” he said.
Should you buy gold now?
Experts suggest waiting and watching for clearer signs from the US jobs data and any new developments on tariffs. Short-term volatility may persist due to the strong dollar and high interest rates.
However, traders believe gold’s long-term outlook stays positive if global economic risks flare up again.
-With Reuters inputs
