Gold prices are under pressure, focusing on the Fed storm
Weekly gold price report: The rebound of the US dollar suppresses precious metals, and the market focuses on the Fed's policies and trade negotiations
Market review
On Friday (July 26), the international gold price was under pressure to fall, with spot gold falling 0.9% to $3,336.01/ounce, and COMEX gold futures closing down 1.1% to $3,335.6/ounce. The US dollar index rebounded from a low of more than two weeks, and the progress in US-EU trade negotiations weakened the demand for safe havens, which jointly suppressed the performance of precious metals.
Analysis of core influencing factors
The US dollar and trade situation
The US-EU trade agreement negotiations have entered a critical stage. The EU said that "the agreement is just around the corner", but member states still approved the potential counter-tariff plan. US President Trump said that he will negotiate with the EU on Sunday, with a probability of 50%. If the agreement is implemented, it may further suppress the safe-haven properties of gold.
The recent trade agreement between Japan and the United States also boosted market risk appetite, and funds flowed to risky assets.
Fed policy expectations
Despite the resilience of the US labor market (initial jobless claims fell to 217,000 last week, the sixth consecutive week of decline), the market generally expects the Fed to keep interest rates unchanged at its July meeting.
Trump has recently pressured the Fed to cut interest rates and even made a rare visit to the Fed headquarters, sparking discussions on policy independence. Some analysts believe that if inflationary pressures ease, the Fed may release dovish signals in the second half of the year.
Fund positions and central bank demand
As of the week of July 22, hedge funds' net long positions in gold increased to 170,868 contracts, the highest level since April, reflecting the market's long-term concerns about trade tensions.
Central bank gold purchase demand still provides structural support for gold prices.
Geopolitical dynamics
Israeli-Palestinian conflict: Hamas said that the ceasefire negotiations have made progress, but the US statement caused a surprise, and the progress of subsequent negotiations may affect market sentiment.
Russia-Ukraine situation: Turkey coordinates all parties to hold a leaders' summit in Turkey. Russia and Ukraine have agreed in principle to meet, and potential peace plans may reduce the safe-haven premium.
Outlook for the future
Key short-term events:
US/EU/China trade negotiations: If progress is optimistic, gold prices may fall to the support level of $3,300/ounce.
Federal Reserve July resolution: Pay attention to the policy statement's hints on the path of interest rate cuts and the Fed's response to political pressure.
US non-farm data: If the employment data is strong, it may strengthen the expectation of "higher for longer" interest rates.
Technical aspect: Near $3,300/ounce may attract buying, but breaking through the previous high requires clearer signals of monetary policy shift.
Risk warning: Repeated trade negotiations, escalating geopolitical conflicts or unexpectedly dovish Fed may reverse the decline in gold prices.
Weekly gold price report: The rebound of the US dollar suppresses precious metals, and the market focuses on the Fed's policies and trade negotiations
Market review
On Friday (July 26), the international gold price was under pressure to fall, with spot gold falling 0.9% to $3,336.01/ounce, and COMEX gold futures closing down 1.1% to $3,335.6/ounce. The US dollar index rebounded from a low of more than two weeks, and the progress in US-EU trade negotiations weakened the demand for safe havens, which jointly suppressed the performance of precious metals.
Analysis of core influencing factors
The US dollar and trade situation
The US-EU trade agreement negotiations have entered a critical stage. The EU said that "the agreement is just around the corner", but member states still approved the potential counter-tariff plan. US President Trump said that he will negotiate with the EU on Sunday, with a probability of 50%. If the agreement is implemented, it may further suppress the safe-haven properties of gold.
The recent trade agreement between Japan and the United States also boosted market risk appetite, and funds flowed to risky assets.
Fed policy expectations
Despite the resilience of the US labor market (initial jobless claims fell to 217,000 last week, the sixth consecutive week of decline), the market generally expects the Fed to keep interest rates unchanged at its July meeting.
Trump has recently pressured the Fed to cut interest rates and even made a rare visit to the Fed headquarters, sparking discussions on policy independence. Some analysts believe that if inflationary pressures ease, the Fed may release dovish signals in the second half of the year.
Fund positions and central bank demand
As of the week of July 22, hedge funds' net long positions in gold increased to 170,868 contracts, the highest level since April, reflecting the market's long-term concerns about trade tensions.
Central bank gold purchase demand still provides structural support for gold prices.
Geopolitical dynamics
Israeli-Palestinian conflict: Hamas said that the ceasefire negotiations have made progress, but the US statement caused a surprise, and the progress of subsequent negotiations may affect market sentiment.
Russia-Ukraine situation: Turkey coordinates all parties to hold a leaders' summit in Turkey. Russia and Ukraine have agreed in principle to meet, and potential peace plans may reduce the safe-haven premium.
Outlook for the future
Key short-term events:
US/EU/China trade negotiations: If progress is optimistic, gold prices may fall to the support level of $3,300/ounce.
Federal Reserve July resolution: Pay attention to the policy statement's hints on the path of interest rate cuts and the Fed's response to political pressure.
US non-farm data: If the employment data is strong, it may strengthen the expectation of "higher for longer" interest rates.
Technical aspect: Near $3,300/ounce may attract buying, but breaking through the previous high requires clearer signals of monetary policy shift.
Risk warning: Repeated trade negotiations, escalating geopolitical conflicts or unexpectedly dovish Fed may reverse the decline in gold prices.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Free Signals：t.me/+CXftl_-QHEo2Yzc0
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.