Gold Dips Below $3,300 as Strong U.S. Data Overshadows Fed Watch

Gold prices fell below $3,300 on July 30, 2025, shedding nearly 1% as robust U.S. economic data dampened demand for the safe-haven metal. Trading near $3,293, gold struggled amid easing global trade tensions and a risk-on market mood, though a softer U.S. dollar and slightly lower Treasury yields offered some support. With the Federal Reserve’s interest rate decision looming, investors remained cautious, awaiting clues on future monetary policy.

Strong U.S. economic indicators drove the decline. The ADP Employment Change report showed 104,000 jobs added in July, surpassing forecasts of 78,000. Q2 GDP growth hit 3%, beating the 2.4% estimate, while core PCE inflation rose 2.5%, slightly above expectations but down from 3.5% in Q1. These figures signaled economic resilience, reducing gold’s appeal as a hedge. Meanwhile, easing trade tensions, including a US-EU deal with a 15% tariff and ongoing talks with Canada and South Korea, further eroded safe-haven demand.

The Federal Reserve is expected to hold rates at 4.25%-4.5% on Wednesday, with focus on its forward guidance. Markets are pricing in a 65% chance of a September rate cut, which could lift gold if the Fed signals dovishness. However, a hawkish stance may push prices lower. As trade talks progress toward an August 12 deadline with China, gold’s path hinges on Fed cues and global risk sentiment.