Gold prices retreated slightly after hitting a one-month high, driven by renewed USD demand and positive market sentiment. Despite the pullback, downside risks for gold remain limited due to ongoing uncertainties around U.S. trade policies and softer inflation data, which keep the Federal Reserve’s future rate cuts in view. While the USD gained strength from Fed rate expectations and geopolitical developments, lower Treasury yields and abating inflation pressures continue to support gold as a safe-haven asset.
Technically, gold prices face resistance around the $2,715-$2,720 zone, with potential gains up to $2,750 or even $2,790 in a bullish scenario. On the downside, key support is found near $2,678 and $2,664, which, if breached, could expose the $2,635 and $2,615 levels. Investors now await U.S. retail sales and jobless claims data for further direction.


