Gold Slides Below $3,300 as Dollar Gains, Fed Minutes in Focus

Gold prices dipped below $3,300 after peaking at $3,325, marking a 0.18% decline as the US Dollar and Treasury yields strengthened. With traders eagerly awaiting the Federal Reserve’s latest meeting Minutes at 18:00 GMT, a dovish signal could reignite bullion’s rally, though Fed officials appear cautious amid tariff uncertainties. Geopolitical tensions, including Russia-Ukraine and Israel-Hamas conflicts, continue to bolster gold’s safe-haven appeal, while analysts advocate for higher gold allocations due to central bank demand and risks to US institutional credibility.

The US Dollar Index (DXY) climbed 0.33% to 99.89, fueled by a four-year high in Consumer Confidence, while the 10-year Treasury yield rose to 4.493%, with real yields at 2.171%. Gold imports to Switzerland from the US hit a decade-high, and China’s net gold imports via Hong Kong doubled in April. A potential US-India trade framework announcement also signals evolving trade dynamics. Looking ahead, Q1 2025 GDP data and the Core PCE Price Index will shape market sentiment, with money markets projecting 44.5 basis points of easing by year-end.

Technically, gold is consolidating between $3,280 and $3,330. With the Relative Strength Index (RSI) nearing its 50-neutral line, fading bullish momentum could drive prices toward $3,250 if support breaks.