Globally, spot gold stayed near a three-week low at around $3,311 per ounce. The drop follows news of a fresh US-EU trade deal that imposed a lower 15% tariff on EU goods—half the earlier threat.
This deal has cooled fears of a wider tariff war. It also sparked a shift toward riskier assets, cutting demand for gold.“The easing trade war chatter and stronger dollar make gold costlier for other currency holders,” said Tim Waterer, Chief Market Analyst at KCM Trade. But he noted that gold near $3,300 still interests long-term buyers.
Riya Singh, Research Analyst at Emkay Global, said gold has entered a “phase of consolidation” as the safe-haven rush softens.“The EU’s $600 billion investment pledge into US sectors like energy and defence has strengthened the dollar further, weighing on gold,” Singh noted.
Despite this, the fundamentals look firm. Speculative bets on gold have touched a 16-week high, showing many traders still see upside. Geopolitical risks, including tensions in Ukraine and the Middle East, add to gold’s long-term support.
Technically, Singh points out that gold has support around $3,250. If prices hold, buyers may step in. This week’s big trigger is the US Federal Reserve’s meeting and key economic data. If the Fed signals a dovish tone or soft data emerges, gold may bounce back fast.
In India, a stable rupee and hopes of lower domestic rates add another layer for local buyers. With gold still up over 25% this year globally, many see small dips as a chance to accumulate.
If you plan to buy gold, today’s price cut could be a window. But experts suggest keeping an eye on global data and central bank cues. A steady buying plan works better than chasing quick gains in this volatile market.
–With Reuters inputs
First Published: Jul 29, 2025 11:30 AM IS
