Gold Price Retracts from Two-Week High; $3,300 Key Level for Bulls

Gold Price Retracts from Two-Week High, $3,300 Critical for Bulls

Gold prices have experienced a slight pullback after reaching a two-week high earlier on Thursday, but the downside appears limited due to ongoing positive market fundamentals. Expectations of a Federal Reserve rate cut and rising US fiscal concerns continue to provide support for the yellow metal.

Key Drivers for Gold's Resilience

The pullback in gold prices lacks a significant catalyst and is unlikely to result in a sharp decline. The market remains underpinned by the belief that the Federal Reserve will continue its dovish stance, likely cutting interest rates in 2025. Additionally, fears of a growing US deficit and geopolitical tensions, especially with US-China relations, are helping to sustain investor demand for gold as a safe-haven asset.

$3,300 Level: Make-or-Break for Gold Bulls

Despite the retracement, any further drops in gold prices are expected to be short-lived, and many traders see them as buying opportunities. The $3,300 level has emerged as a crucial support level for gold bulls. If prices manage to hold above or bounce back from this level, the upward trend is likely to continue, while any sustained break below it may shift sentiment.