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Gold (XAUUSD) prices trade in a narrow range as traders weigh rising trade tensions and shifting Fed expectations. U.S. President Donald Trump’s new tariff threats have stirred fears of inflation and policy tightening. At the same time, global risk aversion keeps demand for safe-haven assets like gold alive. The market remains cautious ahead of key Fed signals due this week. Until then, gold holds its ground near major technical levels.
 

Gold Prices Struggle Amid Trump’s Tariff Threats and Fed Rate Uncertainty

Gold prices remain sensitive to policy shifts. U.S. President Donald Trump's latest tariff announcements have added fresh uncertainty to the markets. The deadline for reciprocal tariffs is now set for August 1. His firm stance includes new trade measures against several Asian and African nations. Trump also warned BRICS-aligned countries of an additional 10% tariff, with no exceptions.

These developments have intensified fears of worsening inflation in the U.S. Higher import costs may lead the Federal Reserve to maintain elevated interest rates. As a result, the U.S. Dollar surged to a near two-week high on Monday. This strength has weighed on gold, which offers no yield and typically underperforms when interest rates rise.

However, the Dollar's momentum appears uncertain. Investors remain cautious about the broader economic impact of Trump's tariffs. U.S. fiscal concerns and global risk-off sentiment, as seen in declining equity markets, have helped support gold. As a safe-haven asset, gold continues to attract buyers. Traders now look ahead to Wednesday's release of the FOMC minutes for more clarity on future rate moves.
 

Gold Tests Key Resistance as Rising Wedge Signals Possible Trend Reversal

The gold chart below shows an ongoing bullish trend, defined by two key trend lines that shape the current technical structure. The Primary Trend Line, shown in orange, has extended from early 2024 and provides long-term support. This line has remained intact during a strong year-long rally in gold prices.

The Immediate Trend Line, drawn in black, connects higher lows formed since early 2025. It indicates a steeper, short-term upward momentum. Recently, however, price action has developed into a rising wedge pattern—a formation that often signals weakening momentum and potential trend reversal.

(Click on image to enlarge)

Gold is currently trading near $3,336, after several failed attempts to break above the wedge resistance. Despite this, it continues to hold above key support around $3,200. A break below the immediate trend line could lead to a deeper correction, potentially testing the primary support near $2,900–$3,000. On the other hand, a decisive move above $3,360 may open the door for further gains. Traders should monitor volume and momentum signals closely to confirm the direction of the next major move.
 

Conclusion

Gold prices remain steady but uncertain. Despite short-term pressure from a stronger U.S. Dollar and fewer Fed rate-cut bets, gold has not seen heavy selling. Traders weigh inflation fears driven by Trump's tariffs against safe-haven demand amid geopolitical risks. With the FOMC minutes ahead, gold markets are poised for potential volatility. Until then, the yellow metal holds above its technical support and awaits fresh direction. 

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