Gold price slides closer to $3,300 amid the emergence of some USD buying

• Gold price drops to a multi-day low on Monday amid modest USD strength.
• Fed rate cut bets and US fiscal concerns should act as a headwind for the USD.
• Geopolitical risks could further offer support to the safe-haven precious metal.

Gold price (XAU/USD) attracts fresh sellers at the start of a new week and slides to the $3,300 neighborhood, or a multi-day low during the Asian session. The intraday downfall is sponsored by a modest US Dollar (USD) strength, which tends to undermine demand for the USD-denominated commodity, though a combination of factors could help limit deeper losses. Investors remain worried that US President Donald Trump's massive tax-cut and spending bill would worsen America's long-term debt problems. This, along with bets that the Federal Reserve (Fed) will resume its rate-cutting cycle in the near future, should keep a lid on the USD and support the non-yielding yellow metal.

Meanwhile, fresh Israeli strikes on Yemen in almost a month and the uncertainty over Trump's erratic trade policies weigh on investors' sentiment. This is evident from a generally weaker tone around the equity markets, which might hold back traders from placing aggressive bearish bets around the safe-haven Gold price in the absence of any relevant US macroeconomic releases on Monday. Market participants now look forward to FOMC meeting minutes for cues about the Fed's policy outlook and rate-cut path. This, in turn, will play a key role in influencing the USD price dynamics. Apart from this, geopolitical and trade-related developments should contribute to providing impetus to the XAU/USD pair.

Daily Digest Market Movers: Gold price is weighed down by modest USD strength

• The US Dollar kicks off the new week on a slightly positive note and weighs on the Gold price, though the downside potential seems limited amid a combination of supporting factors.
• US President Donald Trump's 'One Big Beautiful Bill' is now a law and is expected to add $3.4 trillion to the nation's debt over the next decade, worsening the long-term debt problem.
• This comes amid worries about the potential economic fallout from Trump's reciprocal tariffs and dovish Federal Reserve bets, which should keep a lid on any meaningful USD strength.
• Trump said on his social media early this Monday that the US tariff letters, and/or deals, with various countries from around the world, will be delivered starting 12:00 P.M. on July 7th.
• Trump followed up with a warning, stating that any country aligning with the anti-American policies of BRICS will be charged an additional 10% tariff and there will be no exceptions to this policy.
• Traders are currently pricing in over a 70% chance that the US central bank would lower borrowing costs in September and deliver at least two 25 basis points rate reductions by the year-end.
• The Israeli military carried out intense strikes on Houthi targets in three Yemeni ports and a power plant early this Monday in response to repeated attacks by the Iran-aligned group on Israel.
• This keeps geopolitical risks in play and should offer some support to the safe-haven precious metal. Traders now look to the release of FOMC minutes on Wednesday for a fresh impetus.

Gold price could accelerate the downfall once the $3,300 mark is broken decisively

The recent repeated failures to build on momentum beyond the 100-period Simple Moving Average (SMA) on the 4-hour chart and the subsequent fall below the $3,300 mark will be seen as a fresh trigger for the XAU/USD bears. Given that oscillators on the daily chart have just started gaining negative traction, the Gold price might then accelerate the slide to the next relevant support near the $3,270 horizontal zone en route to the $3,248-3,248 region.

On the flip side, the $3,324-3,325 region now seems to act as an immediate hurdle ahead of the $3,342-3,343 zone. Some follow-through buying, leading to a further strength beyond the $3,352-3,355 area, could provide a goodish lift to the Gold price and allow bulls to aim towards reclaiming the $3,400 round figure.