Gold rebounds from strong support amid Trump’s Fed criticism and Middle East ceasefire

Gold prices struggle to gain momentum amid mixed global cues. A weaker US Dollar supports the metal, but improving risk sentiment limits upside potential. Political tensions, particularly President Trump's criticism of the Fed, add to the uncertainty. At the same time, hopes for peace between Israel and Iran reduce safe-haven demand. Traders now await key U.S. economic data and inflation reports to inform their next move.

Gold supported by weak Dollar despite Fed criticism and geopolitical shifts

Gold prices gained initial support as the US Dollar weakened, attracting buyers. This weakness followed President Donald Trump's renewed criticism of Federal Reserve Chair Jerome Powell. His remarks raised concerns about the Fed's independence, especially with speculation about leadership changes during uncertain economic conditions.

Expectations of rate cuts by the Federal Reserve have grown stronger. These projections have pushed the USD to its lowest level since March 2022. This decline has supported gold, as it becomes cheaper for holders of other currencies. Despite this, the upside for gold remains limited due to improving global risk sentiment and easing geopolitical concerns.

The truce between Israel and Iran has helped calm markets, reducing demand for gold as a safe-haven asset. Although the ceasefire remains fragile, Trump's declaration of diplomatic success has further supported investor confidence. Traders remain cautious, however, and are now closely watching upcoming US data releases, including GDP, jobless claims, and durable goods orders. Market focus will then shift to Friday's PCE Price Index, a key inflation gauge that could influence both the direction of the USD and the next move for gold.

Gold price consolidation between $3,140–$3,420 signals market indecision

The gold chart below shows a clear consolidation phase in the daily price action. Following a strong rally that began in early 2025, prices started to trade sideways between approximately $3,140 and $3,420. This tight range has persisted for more than two months.

The consolidation is marked by repeated tests of both the upper and lower boundaries. Bulls have failed to break above $3,420 with conviction, and bears have struggled to push below $3,140. Each attempt in either direction quickly reversed, signaling indecision and a lack of momentum.

The latest candle shows a mild pullback after a brief uptick, reflecting uncertainty despite a soft USD backdrop. Price action suggests that traders are waiting for a fundamental catalyst to drive the next significant move. Volume and volatility are also lower during this consolidation, further indicating a lack of market enthusiasm.

A confirmed breakout above $3,420 would likely attract strong bullish interest, potentially targeting fresh all-time highs. Conversely, a breakdown below $3,140 could shift sentiment bearish, exposing support levels near $3,000 and $2,900. Until a clear breakout occurs, price action will likely remain range-bound.

Conclusion

Gold prices remain trapped in a consolidation zone as traders weigh geopolitical risks, economic data, and Fed policy outlook. Although a weaker US Dollar supports gold, fading Middle East tensions and uncertainty about Fed leadership cap gains. The technical chart shows a well-defined range between $3,140 and $3,420, and only a breakout beyond these levels will signal the next directional move. Investors now await key economic indicators and PCE inflation data to clarify the future path of gold.

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