May 30, 2025 – Gold prices remained subdued ahead of the European trading session on Friday, hovering just below the psychologically significant $3,300 mark as modest U.S. dollar strength applied downward pressure. Despite the dip, the precious metal held above Thursday’s one-week low, bolstered by a combination of geopolitical tensions and economic uncertainty.
The U.S. dollar’s mild rebound has undercut some of gold’s recent gains, yet broader market sentiment remains cautious due to ongoing geopolitical risks and renewed trade tensions. On Thursday, a federal appeals court temporarily reinstated former President Donald Trump’s tariffs—overruling a separate trade court’s decision to block them. The ruling has reintroduced a layer of uncertainty into the global markets, prompting a cautious flight to safe-haven assets such as gold.
Adding to investor anxiety, the Wall Street Journal reported that the Trump administration may invoke existing legislation to implement tariffs of up to 15% for a period of 150 days. Meanwhile, geopolitical tensions remain elevated. Kremlin spokesperson Dmitry Peskov confirmed that Ukraine has yet to respond to a Russian proposal for peace talks scheduled in Istanbul. In the Middle East, the White House announced that Israel has agreed to a U.S.-backed ceasefire proposal, but Hamas rejected the terms, keeping the risk premium on gold intact.
Eyes on Fed Policy and Inflation Data
Market participants are also closely watching the Federal Reserve’s next move. Despite rising speculation that the Fed may deliver two 25-basis-point rate cuts by year-end, the latest Federal Open Market Committee (FOMC) minutes revealed a consensus to maintain a cautious, data-driven approach. Chicago Fed President Austan Goolsbee and San Francisco Fed President Mary Daly echoed similar sentiments, suggesting potential rate cuts remain on the table—provided inflation cools and the labor market holds firm.
Dallas Fed President Lorie Logan emphasized a balanced view on employment and inflation risks, asserting that the Fed stands ready to adjust policy if the outlook shifts. Fed Chair Jerome Powell, who met with the President on Thursday, reaffirmed the central bank’s commitment to data-dependent decision-making, heightening the focus on Friday’s key inflation report—particularly the Personal Consumption Expenditures (PCE) Price Index.
Technical Outlook: Support and Resistance Levels in Focus
From a technical standpoint, gold’s failure to break the $3,325–$3,326 resistance zone and subsequent drop below the $3,300 level suggests bearish momentum could intensify. Short-term indicators show increasing downside pressure, with immediate support resting near $3,280. A clear breach of this level may open the door for a deeper decline toward the $3,245 region, and potentially the $3,200 psychological threshold.
Conversely, any sustained recovery above the $3,325 barrier could signal a shift in sentiment and fuel a short-covering rally toward the $3,400 mark. A breakout beyond that could see further gains, with resistance expected near the $3,432–$3,434 zone.
