Gold price refreshes daily low amid a broadly stronger USD; shows some resilience below $3,300

Gold price (XAU/USD) continues to lose ground through the first half of the European session on Tuesday, though it shows some resilience below the $3,300 mark and recovers slightly from the daily low touched in the last hour. The latest optimism led by US President Donald Trump's decision to delay imposing tariffs on the European Union (EU), along with a goodish US Dollar (USD) rebound from the monthly low, exerts pressure on the commodity for the second straight day.

However, the uncertainty around Trump's trade policies, worries about the worsening US fiscal situation, and geopolitical risks offer some support to the safe-haven Gold price. Moreover, expectations that the Federal Reserve (Fed) will stick to its policy easing bias and cut interest rates further in 2025 should cap any meaningful USD appreciation, which should contribute to limiting losses for the non-yielding yellow metal. This, in turn, warrants caution for aggressive XAU/USD bears.

Daily Digest Market Movers: Gold price bears retain intraday control amid rebounding USD

• US President Donald Trump agreed on Sunday to postpone the proposed 50% tariffs on the European Union from June 1 until July 9. The announcement followed a call with EU President Ursula von der Leyen, who said that the bloc was ready to move quickly in trade talks with the US but needed more time to strike a deal.
• The development offered some relief to markets, though investors remain on edge amid the uncertainty surrounding Trump's trade policies and deep-rooted tensions between the US and China – the world's two largest economies. Apart from this, US fiscal concerns and geopolitical risks could lend support to the Gold price.
• Trump’s dubbed “Big, Beautiful Bill”, which would add an estimated $4 trillion to the federal primary deficit over the next decade, was passed in the lower house last week and will be voted on in the Senate this week. This fuels worries that the US budget deficit could worsen at a faster pace than previously expected.
• Meanwhile, signs of easing inflationary pressure in the US lifted market bets that the Federal Reserve will eventually step in to support economic growth. In fact, traders are pricing in the possibility of at least two 25 basis point Fed rate cuts by the year-end, which keeps the US Dollar depressed near the monthly low.
• Russia launched the largest aerial assault since its full-scale invasion of Ukraine in February 2022. In response, Trump said that he was considering new sanctions against Russia and called Russian President Vladimir Putin crazy. Moreover, the continuous Israeli strikes on Gaza keep the geopolitical risk in play.
• Traders now look forward to Tuesday's US macro releases– Durable Goods Orders and the Conference Board's Consumer Confidence Index. The focus, however, will be on FOMC minutes, due on Wednesday, which might offer some cues about the Fed's rate-cut path and provide some impetus to the USD.
• This week's US economic docket also features the release of the Prelim Q1 GDP and the Personal Consumption Expenditure (PCE) Price Index on Thursday and Friday, respectively. This, in turn, should infuse some volatility around the XAU/USD pair and allow traders to grab meaningful opportunities.

Gold price could accelerate the corrective decline once 100-period SMA on H4 is broken decisively

From a technical perspective, the commodity currently flirts with short-term ascending trend-line support. Some follow-through selling and a break below the $3,300 round figure and the 100-period Simple Moving Average (SMA) on the 4-hour chart could make the Gold price vulnerable and pave the way for deeper losses.

On the flip side,, the $3,325-3,326 horizontal support beak point now seems to act as an immediate hurdle ahead of Friday's swing higg, around the $3,366 area. A sustained strength beyond will be seen as a fresh trigger for bulls and allow the Gold price to reclaim the $3,400 mark. The next relevant hurdle is seen near the $3,430 region, above which the XAU/USD could surpass an intermediate resistance around the $3,465-3,470 zone and challenge the all-time peak, around the $3,500 psychological mark touched in April.