Gold Dips as Trump Tariffs Drive Bond Yields Higher; Bears Eye $3248

Gold pared most of its gains as a new Tariff by Trump pushed US bond yields higher. It hit a low of $3296 yesterday and is currently trading around $3310.

Effective August 1, 2025, unless new trade agreements are completed, the United States has declared a fresh round of tariffs on imports from several countries, spanning 25% to 40%. This move targets trade imbalances and promotes closer reciprocal trade relations, therefore affecting both major trading partners and poorer countries. These measures, which the U. S. government sees as essential to address long-standing trade imbalances and safeguard local industries, are also cautioned that any retaliatory taxes will result in extra U. S. tariff hikes. Already generating much volatility in world financial markets, this escalation in trade policy is set to have broad repercussions for international commerce and economic connections.

According to the CME Fed Watch tool, the chances of a rate pause in the Jul 30th, 2025, meeting have increased to 95.30% from 79.30% a week ago.

Technical Analysis: Key Levels and Trading Strategy
 
Gold prices are holding below the short-term moving averages, 34 EMA and  55 EMA, and the long-term moving averages (200 EMA) on the 4-hour chart. Immediate support is at $3295, and a break below this level will drag the yellow metal to $3275/$3245. The near-term resistance is at $3330 with potential price targets at $3350/$3385/$3400/43420$3450/$3475/$3500/$3550.

It is good to sell below $3295 with a stop-loss at $3320 for a target price of $3248/$3200.