Spot Gold Steadies Amid Dollar Weakness and Geopolitical Ceasefire; Caution in Data and Technicals

The yellow precious metal prices steadied on Thursday, supported by a weaker US dollar after President Trump criticised Fed Chair Jerome Powell at the NATO Summit, calling him “terrible,” accusing him of politicising the Fed, and demanding immediate rate cuts.

Trump also hinted at possible replacements, including former Federal Reserve Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and Treasury Secretary Scott Bessent, raising concerns over potential political interference and adding bearish pressure on the dollar.

US Q1 2025 GDP contracted 0.5% annualised, worse than the prior 0.2% estimate, due to weaker consumer spending and exports—the first contraction in three years.

Initial Jobless Claims fell by 9,000 to 236,000 but remain above the yearly average, indicating slowing labour momentum.

May’s Durable Goods Orders surged 16.4%, showing resilience in manufacturing despite broader economic concerns.

Market focus shifts to Friday’s Core PCE Price Index release, the Fed’s preferred inflation gauge, expected to remain steady at 0.1% month-over-month, with year-over-year core PCE rising to 2.6% from 2.5%, and headline PCE to 2.3% from 2.1%.

Spot gold steadied following a fragile ceasefire between Israel and Iran on Wednesday.

Trump signalled talks but remained sceptical, insisting Iran’s nuclear program was destroyed, while Iran questioned US credibility after the attack.

Technically, the RSI remains negative and the MACD signals a bearish trend, while the ADX shows a range-bound market.

Stop-losses are pressuring support near $3,300–$3,315, a key area for potential rebounds and reassessment, as $3,400 to $3,500 (all-time high) could still be on the cards in the near term.

Daily Chart Spot Gold

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