Date: August 5, 2025
Trend Outlook: Bullish
Gold Price Range Today:
- Support Levels: $3355 • $3330 • $3240
- Resistance Levels: $3388 • $3410 • $3460
📈 Gold Climbs on USD Weakness and Rate Cut Bets
Gold (XAU/USD) is holding firm near $3373 per ounce after testing resistance at $3382. The metal has gained for three straight sessions, recovering sharply from recent lows around $3268, driven largely by renewed pressure on the US Dollar and expectations of a Federal Reserve interest rate cut in September.
Friday’s session marked the biggest single-day rally in two months, signaling a strong return of bullish sentiment among traders.
🔍 Why Is Gold Rising Again?
- Disappointing US jobs data showed non-farm payrolls increased by only 73,000 jobs in July, far below expectations.
- The US Dollar Index (DXY) has fallen below 99, reflecting broad weakness against major currencies.
- Markets are now pricing in an 81% probability of a Fed rate cut in September, according to CME FedWatch Tool.
- Additionally, President Donald Trump announced new tariffs (10%–41%) on imports from dozens of countries, increasing global economic uncertainty.
These factors have reignited safe-haven demand for gold and pushed the market back into bullish territory.
📊 Technical Outlook: Momentum Indicators Turning Positive
- The 14-day RSI has risen to 54, moving away from the neutral midline and signaling further upside potential before entering overbought levels.
- The MACD indicator is also curving upward, supporting a near-term bullish continuation.
If bullish momentum persists, gold may test the psychological $3400 resistance level, with a potential breakout targeting $3460.
⚠️ Gold Trading Signals for Today (05/08/2025)
- ✅ Sell Entry: Near resistance at $3400, with target at $3290, stop-loss at $3440
- ✅ Buy Entry: From support at $3310, targeting $3390, with stop-loss at $3290
💡 Trading Strategy & Tips
- Traders are advised to buy on dips, especially near support zones, but avoid excessive risk.
- Carefully monitor developments in the US labor market, Fed commentary, and tariff policy, as they remain key drivers for gold.
🏦 Dollar Decline Deepens on Fed Pivot Expectations
- The Fed is expected to cut rates, with more than 63 bps of easing priced in by year-end.
- Trump’s dismissal of the Bureau of Labor Statistics (BLS) commissioner has added to market unease, citing manipulation of employment data.
- US 10-year Treasury yields dropped to a three-month low of 4.20%, confirming weaker growth outlooks and supporting gold prices.
- The Treasury has also announced expanded buyback programs, further pressuring yields.
📌 Conclusion: Gold Positioned for Further Gains
With the US Dollar weakening, bond yields falling, and market uncertainty rising, gold remains in a favorable technical and fundamental setup. A sustained move above $3388–$3400 could open the path to new monthly highs, while dips toward $3330–$3355 are expected to attract strong buying interest.
Stay ahead of the markets with real-time gold analysis, trading strategies, and forex insights at DailyForex.pk – your daily source for trusted financial coverage in Pakistan.