Gold Edges Lower Amid Eased Global Tensions and Stronger Dollar

Gold prices dipped slightly, trading around $3,311 per ounce as of the morning of July 29, 2025, reflecting easing geopolitical tensions. Prices fell from recent highs following improved trade negotiations between the U.S. and China.

Investors’ shift away from safe-haven assets was clear as optimism around reduced tariffs between the U.S. and EU strengthened the U.S. dollar.

Technical analysis from TradingView showed gold faced pressure, trading below key moving averages on the daily chart, suggesting bearish momentum. Gold prices remained trapped under resistance at the Ichimoku cloud, confirming continued market weakness.

The Relative Strength Index (RSI) lingered around 45-52, signaling no immediate bullish or bearish extremes. Examining the 4-hour chart provided further clarity, with gold recently bottoming near $3,298, where short-term support appeared strong.

RSI briefly entered oversold conditions at approximately 35, indicating a potential short-term bounce could occur soon. The MACD histogram remained negative, though weakening downside momentum was evident from shrinking bars.

Global liquidity, as represented by the NDQ Global Liquidity Index (yellow line), showed signs of contraction, correlating with recent downward pressure on gold.

Reduced global liquidity often limits investor willingness to hold non-yielding assets like gold, providing additional headwinds. Fundamentals offered further insights, with gold-backed ETFs continuing substantial inflows during the first half of 2025.

Funds globally attracted $38 billion in new investments, significantly boosting gold holdings. Despite recent weakness, investors appear committed to gold as a long-term portfolio hedge against economic uncertainties.

Macroeconomic developments remain crucial, especially regarding upcoming Federal Reserve policy announcements. Expectations currently lean toward stable interest rates, yet any dovish signals or unexpected weak economic data could reignite bullish sentiment for gold.

Regional markets reflected similar caution, with Indian gold futures slightly lower at ₹98,052 per 10 grams, mirroring global trends.

Overall, while short-term sentiment appears bearish, sustained ETF inflows and central bank purchases provide underlying support, potentially stabilizing prices around current levels in the coming sessions.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.