Golden rallies as Fed PIVT market sniffs next year, the US gives slip

Gold is supported by the falling profitability of the US treasury despite the definite American dollar.
Fed minutes show broad support for at least one rate reduction in 2025.
Trump attacks nations adapted to BRICS with fresh 10% tariff warnings.

Gold price Registers of decent profits on Wednesday, when the State Treasury gives the resignation, despite the fact that Greenback trades solidly against peers. Commercial development still dictates the direction of the market, while the last minutes indicate that officials are still considering a reduction in the rate in 2025. At the time of writing, Xau/USD is traded at USD 3312, which is an enhance of 0.31%.

Fed minutes have shown that most officials see this year a reduction in the rate of FED funds, and the couple consider reducing in July if the data evolves as expected.

The White House still provides blows to minors and main trade partners, issuing the latest batch of letters to countries such as the Philippines, Moldova, Algeria, Iraq, Libya, Brunei and Sri Lanka. The obligations were set at about 20% to 30% for the aforementioned countries.

On Wednesday, US President Donald Trump emphasized that he would apply 10% of additional tariffs to countries adapting to the anti -American BRICS policy.

Data from the Chicago Board of Trade revealed that market players look at 50 base points (BPS) in 2025.

Daily Digest Market Movers: Golden Prices when the White House announces another tranche of letters

Uptrend Gold remains intact because it remains above powerful support nearly 3,250 USD. Drop in the American treasury treasury increased yellow metal. The 10-year Note of the US treasury will fall six base points up to 4.342%. Real yields are also six BPS at 1.992%. The American dollar index (DXY), which tracks Greenback’s performance in relation to the currency basket, is flat at 97.51.
Fomc minutes have shown that some Fed officials do not see the rate reduction in 2025, citing that inflationary pressure remains high, along with the expectations of inflation and continuous economic resistance. All participants reviewed the current policy rate accordingly. Participants agreed that the stagflation risk decreased, although they remain increased.
Washington presented tariffs to the Philippines (20%), Moldova (25%), Algeria (30%), Iraq (30%), Libya (30%), Brunei (25%), Sri Lanka (30%) and finally Brazilia (50%).
Trump again criticized the chairman of the Federal Reserve Jerome Powell, adding that the central bank must lower the rates by at least 3%. He sent copper prices higher because they threaten to impose 50% of the obligation on red metal.
Although Xau/USD remains pressure, the World Gold Council (WGC) has announced that the Golden ETF has attracted the largest inflow in five years in the first half of 2025. “Golden ETF recorded an influx of $ 38 billion in the first half of 2025, and their joint farms increased by 397.1 metric gold.” Total shares until the end of June increased to 3,615.9 tons, the largest from August 2022.
PBOC revealed that he added 70,000 ounces, which means that the Golden Central Bank reserves have increased by 1.1 million ounce since the resumption of purchases in November last year.

Technical perspectives XAU/USD: gold prices of connection above USD 3300

Gold The price of the price is intact, although it will have tough resistance in the near future. Although the relative strength (RSI) indicator is aimed at bear, the indication that it was tough to immaculate the 50-day level of movable medium resistance (SMA) at USD 3319. In this result, the next level of the ceiling would be a 20-day SMA after USD 3345, USD 3350 before USD 3,400.

And vice versa, if Xau/USD drops below $ 3300, the first support would be the lowest levels of USD 3246 in June $ 3246 to pave the way to further decline, with a 100-day straight-straight movable (SMA) with $ 3185 eyes, and then the lowest level $ 15 $ 3120.

FAQ tariff

Tariffs are customs duties taken for some imports of goods or product category. The tariffs are designed to lend a hand local producers to be more competitive on the market, providing price advantage compared to similar goods that can be imported. The tariffs are widely used as tools of protectionism, along with trade barriers and import amounts.

Although both tariffs and taxes generate government income to finance public goods and services, they have several distinctions. The tariffs are paid at the entrance port and the taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, and the tariffs are paid by importers.

There are two schools of thinking among economists regarding the apply of tariffs. While some say that tariffs are necessary to protect national industries and solve the problem of commercial imbalance, others perceive them as a harmful tool that can potentially enhance prices in the long-term perspective and lead to a harmful trade war by encouraging Tit-For Tatt tariffs.

During the fall to the presidential election in November 2024, Donald Trump explained that he was going to apply the tariffs to support the US and American producers. In 2024, Mexico, China and Canada constituted 42% of total US imports. According to the American office of the population, Mexico was distinguished as the best exporter by $ 466.6 billion. That is why Trump wants to focus on these three nations by applying tariffs. It also plans to apply revenues generated by tariffs to reduce personal income taxes.