The post Gold drops to $3,300 neighborhood amid modest USD strength appeared on BitcoinEthereumNews.com.

Gold price struggles to capitalize on the previous day’s bounce from a one-week trough. The emergence of some USD buying and trade optimism weighed on the XAU/USD pair. Fed rate cut bets, US fiscal concerns, and geopolitical risks could support the commodity. Gold price (XAU/USD) attracts fresh sellers during the Asian session on Tuesday and drops to the $3,300 neighborhood in the last hour, closer to a one-week low touched the previous day. The optimism over US-China trade talks undermines safe-haven assets, which, along with a goodish pickup in the US Dollar (USD) demand, turn out to be key factors exerting downward pressure on the bullion. However, the growing acceptance that the Federal Reserve (Fed) will lower borrowing costs further in 2025 might keep a lid on any meaningful USD appreciation. Furthermore, persistent geopolitical risks stemming from the protracted Russia-Ukraine war and conflicts in the Middle East should help limit losses for the Gold price. This warrants caution for the XAU/USD bears ahead of US inflation figures. Daily Digest Market Movers: Gold price is pressured by receding safe-haven demand and a stronger USD Chinese and US officials extend the new round of trade talks in London to a second day on Tuesday, fueling hopes for a deal between the world’s two largest economies. This remains supportive of a generally positive risk tone and prompts fresh selling around the safe-haven Gold price during the Asian session on Tuesday. A stronger-than-expected US Nonfarm Payrolls (NFP) report released on Friday dampened hopes for imminent interest rate cuts by the Federal Reserve this year. This assists the US Dollar to regain positive traction and turns out to be another factor that contributes to driving flows away from the non-yielding yellow metal. However, the CME Group’s FedWatch Tool indicates that traders are still pricing in…

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Filed under: News - @ June 10, 2025 5:17 am