XAU/USD: Gold Prices Ricochet Off $3,400 as Traders Eye String of Key Updates

Bullion jumped to a one-month high of $3,402 before coming down by about 20 bucks. What’s next could be a catalyst for a new leg higher (or lower).

🐜 Gold Traders Get Antsy

• Gold prices XAUUSD jumped to $3,402 on Tuesday — its highest in over a month — before paring gains to trade around $3,380 per ounce. Still, the move was enough to bring back bullish appetite as gold bugs juggle a weaker dollar, lower yields, and rising global tensions.
• Traders are eyeing the August 1 tariff deadline, with President Trump threatening a 30% blanket duty on European imports if a deal isn’t reached. Bloc officials are already prepping a broader set of countermeasures. In other words: gold smells smoke.
• As risk ramps and safe-haven bids return, bullion’s bounce may not be a one-off — especially with macro fireworks queued up through next week.

💬 Powell, ECB, and the Chessboard

• The European Central Bank is expected to hold rates at 2.0% when it wraps up its meeting on Thursday. After a string of cuts, that pause could offer some relief to the euro — or just widen the rate gap if the Fed gets dovish.
• Speaking of the Fed, Chair Jay Powell is due to speak Tuesday at a Washington conference. With Trump lobbing verbal grenades about firing him, the buzz around a shock resignation — while unlikely — has traders watching closely.
• Even without drama, Powell’s tone could move markets. If he leans dovish ahead of next week’s FOMC meeting, expect another surge in gold and a softening in the dollar.

🧭 What’s Next for Bullion?

• Gold bulls are cautiously optimistic: the recent breakout puts $3,400 back in play, and a close above that level could open the door to new highs — especially if trade tensions worsen or Powell blinks.
• But there’s still plenty of two-way risk. A hawkish Powell, progress on tariffs, or a bounce in the greenback could easily knock gold back into consolidation mode.
• Presently, though, momentum’s on bullion’s side — but the real catalyst may be just one headline away. Stay nimble. Gold sure is.