Gold Price Forecast: XAU/USD struggles around $3,300, on verge of triangle breakdown

LONDON (July 29) Gold price (XAU/USD) struggles to gain ground after a four-day sell-off near the round level of $3,300 during the European trading session on Tuesday. The precious metal faces selling pressure as demand for safe-haven assets has diminished, following the announcement of a tariff deal between the United States (US) and the European Union (EU).

The US-EU trade agreement confirmation has diminished fears of a disruption in the global trade war. However, the demand fora the US Dollar (USD) has improved, despite being a safe-haven asset. The USD gains as fears of a supply chain disruption in the US economy have faded after the deal.

During the European session, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, advances to near 99.00, the highest level seen in a month.

Technically, a higher US Dollar makes the Gold price an expensive bet for investors.

Meanwhile, investors await the Federal Reserve’s (Fed) monetary policy announcement on Wednesday. According to the CME FedWatch tool, the Fed is certain to leave interest rates steady in the range of 4.25%-4.50%. This would be the fifth straight meeting where the Fed will hold interest rates at their current levels.

Higher interest rates by the Fed for longer bode poorly for non-yielding assets, such as Gold.

FXStreet