Gold price hangs near daily low amid notable USD strength; holds above $3,300

• Gold price drops to a multi-day low on Monday amid modest USD strength.
• Fed rate cut bets and US fiscal concerns should act as a headwind for the USD.
• Geopolitical risks could further offer support to the safe-haven precious metal.

Gold price (XAU/USD) maintains its offered tone heading into the European session on Monday, albeit managing to hold above the $3,300 round figure amid mixed cues. The US Dollar (USD) regains positive traction and moves back closer to last week’s swing high, which, in turn, is seen as a key factor undermining the commodity. However, bets that the Federal Reserve (Fed) will resume its rate-cutting cycle in the near future should keep a lid on the USD and lend support to the non-yielding yellow metal.

Meanwhile, investors remain worried that US President Donald Trump’s massive tax-cut and spending bill would worsen America’s long-term debt problems. Adding to this, fresh Israeli strikes on Yemen in almost a month and the uncertainty over Trump’s erratic trade policies take their toll on the global risk sentiment. This further contributes to limiting losses for the safe-haven Gold price. Traders now look to the FOMC meeting minutes on Wednesday for cues about the Fed’s rate-cut path and a fresh impetus.

Daily Digest Market Movers: Gold price bulls remain on the sidelines amid a broadly stronger USD

• The US Dollar kicks off the new week on a slightly positive note and weighs on the Gold price, though the downside potential seems limited amid a combination of supporting factors.
• US President Donald Trump’s ‘One Big Beautiful Bill’ is now a law and is expected to add $3.4 trillion to the nation’s debt over the next decade, worsening the long-term debt problem.
• This comes amid worries about the potential economic fallout from Trump’s reciprocal tariffs and dovish Federal Reserve bets, which should keep a lid on any meaningful USD strength.
• Trump said on his social media early this Monday that the US tariff letters, and/or deals, with various countries from around the world, will be delivered starting 12:00 P.M. on July 7th.
• Trump followed up with a warning, stating that any country aligning with the anti-American policies of BRICS will be charged an additional 10% tariff and there will be no exceptions to this policy.
• Traders are currently pricing in over a 70% chance that the US central bank would lower borrowing costs in September and deliver at least two 25 basis points rate reductions by the year-end.
• The Israeli military carried out intense strikes on Houthi targets in three Yemeni ports and a power plant early this Monday in response to repeated attacks by the Iran-aligned group on Israel.
• This keeps geopolitical risks in play and should offer some support to the safe-haven precious metal. Traders now look to the release of FOMC minutes on Wednesday for a fresh impetus.

Gold price needs to find acceptance below $3,300 for bears to seize near-term control

The recent repeated failures to build on momentum beyond the 100-period Simple Moving Average (SMA) on the 4-hour chart and the subsequent fall below the $3,300 mark will be seen as a fresh trigger for the XAU/USD bears. Given that oscillators on the daily chart have just started gaining negative traction, the Gold price might then accelerate the slide to the next relevant support near the $3,270 horizontal zone en route to the $3,248-3,248 region.

On the flip side, the $3,324-3,325 region now seems to act as an immediate hurdle ahead of the $3,342-3,343 zone. Some follow-through buying, leading to a further strength beyond the $3,352-3,355 area, could provide a goodish lift to the Gold price and allow bulls to aim towards reclaiming the $3,400 round figure.