Gold Price Holds Near $3,340 Ahead of Trump-Putin Meeting
XAU/USD hovers cautiously near $3,340 ahead of the Trump-Putin meeting
FUNDAMENTAL OVERVIEW:
Gold (XAU/USD) traded cautiously around $3,340 during Friday’s European session, moving within a narrow range as markets awaited the outcome of the scheduled Trump-Putin meeting in Alaska. The discussion between U.S. President Donald Trump and Russian President Vladimir Putin is expected to focus on ending the war in Ukraine, with easing geopolitical tensions generally weighing on safe-haven demand.
In an interview with Fox News, Trump expressed confidence that Putin would agree to halt the war, adding that he would then coordinate with Ukrainian President Volodymyr Zelenskiy and European allies for further talks.
Meanwhile, strong expectations for a Federal Reserve interest rate cut in September continue to underpin gold prices. CME FedWatch data shows a 92.6% probability of a rate cut, which would favor non-yielding assets like gold. These expectations remain firm despite July’s U.S. Producer Price Index (PPI) report indicating that businesses have begun passing tariff costs to consumers, with both headline and core PPI climbing 0.9% month-on-month.
GOLD TECHNICAL ANALYSIS CHART:
Technical Overview:
Gold is trading within a down channel.
Gold is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Neutral Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 3356.12
Immediate support level: 3306.91
HOW TO TRADE GOLD
After an initial rise, gold lost momentum and shifted into range-bound trading. Despite multiple attempts to break higher, it faced repeated rejections. Recently, gold rebounded from the support zone but failed to sustain the move, reversing lower and breaking below support. It is now retesting that level, and further rejection could pave the way for continued downside movement.