Gold stays range-bound amid Trump’s Fed comments and soft US data

Gold (XAUUSD) prices remain on edge as political and economic uncertainty grip the market. Former President Trump’s comments on Fed leadership changes have raised fresh concerns. Weak U.S. data has pushed the dollar closer to multi-day lows. Even with favorable signals, gold’s upward drive remains limited. Investors now await key Fed speeches and decisions. Until then, gold trades sideways, caught between risk appetite and safe-haven demand.

Fed leadership uncertainty and weak US data weigh on markets

In a recent CNBC interview, former President Trump announced that he would soon appoint a temporary replacement for Fed Governor Adriana Kugler. She had recently resigned from her position. He also revealed that four candidates have been shortlisted to replace current Fed Chair Jerome Powell. Powell’s term ends in May 2026. Trump noted that a final decision could be made by the end of the week.

These developments have sparked renewed debate over the Federal Reserve’s independence and the future of its policy direction. Adding to the uncertainty, the latest ISM data showed that the U.S. services sector is losing momentum. The Services PMI dropped to 50.1 in July, down from 50.8 in June, and well below the market forecast of 51.5.

Weak data has pressured the U.S. dollar, keeping it near multi-day lows. However, gold has not fully benefited from this weakness. Growing risk appetite and expectations of global rate cuts have shifted investor focus toward riskier assets. Central banks such as the RBA and BoE are also expected to ease policy, which adds more complexity to the outlook. As a result, traders are closely watching upcoming Fed speeches and Trump’s decisions. These events could drive the next big move in gold prices. Until then, the market may stay in a consolidation phase, with short-term technical levels guiding price action.

Gold consolidates with repeated support and bullish reversals

The gold chart below shows a well-defined technical structure developing on the daily timeframe. Price has tested the key resistance zone near $3,450 on four separate occasions, each time facing rejection. Each resistance test, labeled from “1st” to “4th,” resulted in a temporary top. Despite these pullbacks, gold has consistently found support above the $3,100 level, indicating resilience.

Each pullback has produced bullish hammer formations. These indicate solid demand at lower price levels, particularly around $3,150–$3,200. This consistent buying pressure has formed a rounded base, often seen as a sign of accumulation. Most recently, another bullish hammer has appeared near $3,200, marked as a “Potential reversal for big move.” This suggests that buyers are once again defending support.

If gold manages to break above the $3,450 resistance, it could spark a strong rally toward new highs. The prolonged consolidation indicates that any breakout could be strong and decisive. However, if prices fall below the $3,150–$3,200 support zone, a deeper correction may follow. Traders should remain alert, especially as upcoming Fed announcements may drive increased volatility in the gold market.

Conclusion

Gold prices are under pressure but far from defeated. Political uncertainty and weak U.S. data continue to shape market sentiment. Traders are watching for clear signals from the Fed and upcoming policy shifts. At the same time, the technical setup shows strong support and repeated resistance, hinting at a potential breakout. If momentum builds, gold could rally sharply. But if support fails, downside risks may emerge. For now, gold continues to trade within a tight range, awaiting a clear trigger.

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