Gold Holds Firm Amid Fed Speculation and Tariff Tensions

Gold prices remain resilient within the $3,340–$4,000 per ounce range, buoyed by a softer U.S. dollar and declining Treasury yields. The metal gained 1.42% in the last 24 hours as investors anticipate potential Federal Reserve rate cuts and monitor the August 1 tariff deadline.

The U.S. dollar index (DXY) dipped 0.7%, enhancing gold's appeal for non-dollar buyers. Meanwhile, 10-year Treasury yields hover NEAR one-week lows, further supporting the precious metal. Market sentiment suggests a 59% probability of a September rate cut, which could propel gold toward the upper bound of its current range.

Uncertainty looms as President Trump's threat of 30% tariffs on EU and Mexico imports approaches. Trade tensions and inflationary pressures remain key drivers for gold's trajectory in the coming week.