Gold rises as USD weakens and fiscal risks lift safe-haven demand

• Gold extends gains on Tuesday, buoyed by broad-based US Dollar weakness and safe-haven demand.
• Moody's downgrade of US sovereign debt and renewed fiscal concerns continue to support bullion prices.
• XAU/USD trades near $3,280, holding within a symmetrical triangle structure and testing key resistance at the 20-day SMA.
• Market sentiment remains cautious, with investors closely watching Wednesday's House vote on Trump's "One Big Beautiful" tax bill.

Gold (XAU/USD) prices are surging on Tuesday, buoyed by broad-based US Dollar weakness and renewed concerns over the United States' fiscal health following Friday's Moody's downgrade of US sovereign debt.

The safe-haven metal is extending its rally from Monday, supported by deteriorating growth prospects for the world's largest economy. Gold bulls are now eyeing the key psychological threshold of $3,300, with the metal up 1.65% to trade near $3,280 at the time of writing.

While gains have been somewhat tempered by a rebound in US Treasury Yields and a mutual reduction in tariffs between the US and China, shifting global trade dynamics and persistent policy uncertainty continue to provide a supportive backdrop for bullion.

Looking ahead, Wednesday's House of Representatives vote on President Donald Trump's "One Big Beautiful" tax bill, along with evolving expectations for Federal Reserve policy, are expected to play a pivotal role in shaping short-term Gold price action.

Gold (XAU/USD) bounces off support with $3,300 back in focus

Gold (XAU/USD) is attempting a rebound on Tuesday, climbing over 1.5% to trade near $3,280 as it tests the upper boundary of a symmetrical triangle pattern formed since the April all-time high. 

The price is approaching both the 20-day Simple Moving Average (SMA) at $3,288 and the 23.6% Fibonacci retracement level of the January to April YTD move at $3,291. 

Despite recent downside pressure, the $3,200 support level has held firm, reinforcing the triangle's lower boundary and suggesting strong buyer interest near this zone. 

The Relative Strength Index (RSI) remains neutral around 52.84, indicating a lack of clear momentum bias for now. 

Gold (XAU/USD) daily chart

A breakout above $3,291 would signal bullish continuation and could open the path toward retesting the record high, while a break below $3,200 would invalidate the structure and expose deeper Fibonacci support levels at $3,161 and $3,057.