Insights 
VT 
Key Points:
- Spot gold drops 0.5% to $3,330.21; futures fall to $3,335.70
- Dollar strengthens 0.3% after Trump backs away from Powell firing
- Gold remains range-bound, awaiting US jobless claims and Fed commentary
Gold prices edged lower on Thursday after rebounding sharply the previous day, as concerns over the Federal Reserve’s leadership were temporarily put to rest.
US President Donald Trump quelled market jitters by stating that he currently has no plans to dismiss Fed Chair Jerome Powell—walking back from Wednesday’s dramatic rumour mill that briefly sent bullion soaring as much as 1.6%.
As of 08:27 GMT, spot gold slipped 0.5% to $3,330.21 per ounce, while US gold futures fell 0.7% to $3,335.70. The precious metal lost steam as the dollar regained strength, with the USDX dollar index climbing 0.3%, making gold more expensive for non-dollar holders.
Dollar Strength, Not Dismissal Drama, Drives Pullback
The pullback appears to be largely technical, driven by a stronger greenback and profit-taking after Wednesday’s knee-jerk spike.
Market participants are now shifting focus to Thursday’s US jobless claims and retail sales data, along with scheduled speeches from several Fed officials. These events may help clarify the central bank’s policy direction and offer gold traders new cues, especially around rate expectations.
Despite recent tariff developments, including Trump’s comments about sticking closely to US-Japan tariff agreements and a possible upcoming deal with India, analysts say gold is currently showing muted response to trade noise.
Technical Analysis
Gold (XAUUSD) has been experiencing a downtrend after an initial spike to a high of 3377.54, which failed to hold, leading to a sharp retracement back towards the 3327.58 area.
Picture: Gold consolidates under resistance—watch 3325 for key direction, as seen on the VT Markets app
The price is now trading below all three short-term moving averages (5, 10, 30), a bearish signal that confirms the downward pressure. The MACD is showing a bearish crossover, suggesting that the momentum is waning for the bulls, and the histogram indicates that selling volume is dominating the market.
The key level to watch is the support at 3325.20, where the price has recently tested and held. If this support breaks, the next target will be the psychological level around 3300.
On the other hand, if the price manages to recover and break back above 3377.54, it could lead to a reversal toward 3400–3450. Traders should be cautious of further downside if support holds below the 3325.20 level.
Gold Remains Range-Bound for Now
For the time being, gold appears to be locked in a $3,300–$3,400 consolidation range, with no firm catalyst to drive a breakout. The latest price action reflects a market in wait-and-see mode: watching macro headlines, economic prints, and Fed remarks more than reacting to short-term political drama.
Unless we see a meaningful downside break below $3,318, or a resurgence above $3,375, gold is likely to remain subdued. But with global monetary policy still in flux, that could change quickly.
