XAU/USD: Gold Ticks Up Above $3,300 as Dollar Decline Boosts Safe-Haven Demand

It’s a strong week for gold — precious metal is up more than 3% since Monday as traders are pivoting out of the greenback and into safer bets.

🌊 Gold Reclaims $3,300 as Dollar Retreats

• Gold prices XAUUSD shot up to a Wednesday session high of $3,320 per ounce, reclaiming the $3,300 handle for the second time this week. Lingering uncertainty and changing investment landscape have injected some volatility into the metal this week.
• A weakening US dollar has helped the shiny safe haven — gold is up more than 3% since this week’s trading kicked off. The shift in sentiment away from the buck and into hedges happens amid growing jitters around the US economy.

👠 Safe-Haven Appeal Back in Fashion

• A softening US dollar — pulled lower by cooling inflation expectations and fading Fed rate cut bets — has been the main catalyst behind gold’s renewed rally. But there’s also the recent US credit rating downgrade.
• Moody’s knocked the country’s rating down a notch last week, citing long-term fiscal concerns and the growing burden of servicing debt in a high-rate environment.
• While equity markets brushed it off, safe-haven seekers saw it as another reason to pile into gold — a classic hedge when faith in US stability starts to wobble.

💪 Momentum Holds — for How Long?

• A dip in bond yields and a slower run for economic data have also helped revive gold’s glow. Traders are increasingly hedging risk, and gold has resumed its role as the go-to lifeboat.
• With bullion up more than $100 since Monday’s open, momentum remains firm. Still, traders are watching closely for any big macro swings.
• Any hint of hawkish Fed chatter or a rebound in dollar strength could quickly tap the brakes. For now, though, gold bugs are back in charge — and $3,350 looks like the next level to test. On the flip side, $3,300 is the new support.