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Gold (XAUUSD) experienced sharp fluctuations this week due to shifting economic indicators and political headlines. The Federal Reserve held interest rates steady, which initially boosted the U.S. dollar and pressured gold. However, geopolitical tensions and strong economic data quickly shifted sentiment. Sharp criticism from former President Trump added to uncertainty, increasing safe-haven demand. Investors also digested inflation figures and labour market strength, while Treasury yields pulled back. This mix of signals kept gold volatile but supported its underlying bullish trend.
 

Gold Swings on Fed Pause, Trump’s Remarks, and Sticky Inflation

Gold prices responded to a series of influential events this week. The Federal Reserve kept interest rates unchanged for the fifth consecutive meeting. This decision initially strengthened the US Dollar and pushed Treasury yields higher, which pressured gold. However, attention quickly shifted back to geopolitical risks and mixed economic signals, providing some support for the metal.

Trump fueled market uncertainty with sharp criticism of Fed Chair Jerome Powell for maintaining current interest rates. He called Powell “too stupid” and “too political,” comments that stirred political tensions in an already fragile economic environment. Such remarks often boost safe-haven demand for gold, as investors seek protection against market volatility.

Meanwhile, economic data pointed to persistent inflation and steady growth. The core PCE Price Index rose 0.3% month-over-month and 2.8% year-over-year, slightly above expectations. Personal spending and income also increased, while jobless claims declined, showing strength in the labour market. Yet, despite these substantial numbers, yields on the 10-year and 30-year US Treasuries retreated from recent highs, reflecting investor caution. Fed Chair Powell confirmed that no decision has been made about a potential September rate cut. As a result, market expectations for a rate cut dropped significantly.
 

Technical Analysis: Consistent Breakouts Reinforce Bullish Gold Trend

The gold chart below shows a recurring bullish pattern that has formed consistently over the past few months. Since early 2024, gold has consistently followed a cycle of rallying, consolidating, and then breaking out to new highs. The current market structure appears to be repeating this same behaviour, suggesting a potential continuation of the uptrend.
 

(Click on image to enlarge)

In early 2024, gold consolidated in the $2,100–$2,250 range before breaking out and moving higher. This was followed by another significant consolidation around $2,400–$2,550, which also led to a strong breakout. This repeating breakout pattern continued through mid-2024 and early 2025, ultimately pushing gold prices above the $3,000 mark.

Currently, gold is consolidating between $3,200 and $3,450. This range has remained stable for several weeks, with no significant fluctuations. If the pattern holds, a breakout above $3,450 could lead to another sharp rally toward $3,700 or higher. However, a drop below $3,200 would threaten this bullish structure and could push prices toward $3,050. Momentum remains neutral to bullish, with the recent rebound from $3,268 reinforcing support around $3,200. However, bulls need to overcome the $3,450 resistance to sustain the uptrend.
 

Conclusion

Gold remains in a bullish structure despite recent volatility. Safe-haven demand and geopolitical tensions continue to support the metal. However, the strong US Dollar and mixed economic signals limit immediate upside. The price is holding above key support near $3,200, while resistance at $3,450 remains a significant barrier. If buyers clear this level, gold may resume its uptrend. Until then, consolidation is likely to continue. 

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