Gold prices edged higher to $3,350.90 on July 18, 2025, recovering from a brief dip earlier in the session as traders balanced upbeat US economic data with growing expectations of Federal Reserve rate cuts later this year. The metal has now climbed back above the 20-day simple moving average at $3,331 and is approaching key resistance at $3,375.19. A break above this level could pave the way toward the $3,432 zone, while support remains intact at $3,297, followed by $3,245 and $3,199. The price action remains range-bound with slight bullish momentum, supported by the modest weakening of the US dollar during Asian hours.
US initial jobless claims fell for a fifth consecutive week to their lowest since mid-April, and retail sales showed solid growth in June. These figures point to economic resilience, which traditionally weighs on gold. However, comments from San Francisco Fed President Mary Daly offered a counterbalance, as she signaled that two rate cuts in 2025 are still on the table. The market continues to speculate on how soon the Fed might begin easing, particularly with political pressure mounting from President Trump to act sooner. The uncertainty around monetary policy timing has created a tug-of-war in gold markets, with traders hesitating to commit aggressively in either direction.
Despite this indecision, gold remains up more than 25% year-to-date, reflecting strong underlying demand driven by geopolitical risks and long-term concerns over dollar-denominated assets. Holdings in major gold ETFs remain steady, and traders are now looking ahead to the upcoming Fed meeting for further clarity. Until then, gold is likely to continue oscillating within the $3,297 to $3,375 range, with any breakout driven by shifts in interest rate expectations or unexpected global events.#GOLD #GOLD_UPDATE
