Select Language

Gold rises as Fed minutes signal 2025 cuts, US yields retreat

Breaking news

Gold rises as Fed minutes signal 2025 cuts, US yields retreat

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.07.10 06:20
Gold rises as Fed minutes signal 2025 cuts, US yields retreat

update 2025.07.10 06:20

  • Gold is supported by falling US Treasury yields despite a firm US Dollar.
  • Fed minutes show broad support for at least one rate cut in 2025.
  • Trump targets BRICS-aligned nations with fresh 10% tariff warnings.

Gold price registers decent gains on Wednesday as US Treasury yields recede, even though the Greenback trades solidly against its peers. Trade developments continued to dictate the market's direction, while the latest minutes indicate that officials are still considering a rate cut in 2025. At the time of writing, the XAU/USD trades at $3,312, up 0.31%.

The Fed's minutes showed that most officials see a rate cut to the Fed funds rate this year as appropriate, while a couple are considering a reduction in July, if data evolves as expected.

The White House continues to deliver blows to minor and major trading partners, releasing the latest batch of letters to countries like the Philippines, Moldova, Algeria, Iraq, Libya, Brunei, and Sri Lanka. Duties were set at around 20% to 30% for the countries mentioned.

On Wednesday, the US President Donald Trump emphasized that he would apply 10% additional tariffs to countries aligning themselves with anti-American policies of the BRICS.

Data from the Chicago Board of Trade revealed that market players are eyeing 50 basis points (bps) of easing in 2025.

Daily digest market movers: Gold price surges as White House announces another tranche of letters

  • Gold's uptrend remains intact, as it remains above strong support near $3,250. The drop in US Treasury yields boosted the yellow metal. The US 10-year Treasury note yield drops six basis points to 4.342%. US real yields are also edging lower by six bps at 1.992%. The US Dollar Index (DXY), which tracks the Greenback's performance against a basket of currencies, is flat at 97.51.
  • FOMC Minutes showed that some Fed officials do not see a rate cut in 2025, citing that inflation pressures remain high, along with inflation expectations edging up and ongoing economic resilience. All participants viewed the current policy rate as appropriate. Participants agreed that stagflationary risks had diminished, though they remain elevated.
  • Washington unveiled tariffs to the Philippines (20%), Moldova (25%), Algeria (30%), Iraq (30%), Libya (30%), Brunei (25%), Sri Lanka (30%), and lastly Brazil (50%).
  • Trump once again criticized Federal Reserve Chair Jerome Powell, adding that the central bank needs to cut rates by at least 3%. He sent copper prices higher as he is threatening to impose a 50% duty on the red metal.
  • Even though the XAU/USD remains pressured, the World Gold Council (WGC) announced that Gold ETFs drew the largest inflow in five years during the first half of 2025. "Gold ETFs recorded an inflow of $38 billion in the first half of 2025, with their collective holdings rising by 397.1 metric tons of Gold." The total holdings by the end of June rose to 3,615.9 tons, the largest since August 2022.
  • The PBoC revealed that it added 70,000 ounces, meaning that the central bank's Gold reserves increased by 1.1 million ounces since purchases resumed last November.

XAU/USD technical outlook: Gold price clings above $3,300

Gold price upward bias is intact, though it would be facing stiff resistance in the near-term. Although the Relative Strength Index (RSI) is aiming up, it remains bearish, an indication that clearing the 50-day Simple Moving Average (SMA) resistance level at $3,319 would be hard to accomplish. In that outcome, the next ceiling level would be the 20-day SMA at $3,345, $3,350 ahead of $3,400.

Conversely, if XAU/USD tumbles below $3,300, the first support would be the June 30 low of $3,246 to pave the way for further downside, with the 100-day Simple Moving Average (SMA) at $3,185 eyed, followed by the May 15 low of $3,120.

Gold FAQs

Gold has played a key role in human's history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn't rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country's solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.


Date

Created

 : 2025.07.10

Update

Last updated

 : 2025.07.10

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Silver Price Forecast: XAG/USD edges higher to near $37.00 due to safe-haven demand

Silver price (XAG/USD) halts its three-day losing streak, trading around $36.50 per troy ounce during the Asian hours on Thursday. The safe-haven Silver gains ground due to the renewed trade concerns, driven by a new wave of tariff demand letters from US President Donald Trump on Wednesday
New
update2025.07.10 13:00

EUR/JPY hovers around 171.50 after pulling back from yearly highs

EUR/JPY continues its deterioration for the second successive session after pulling back from a one-year high of 172.28, reached on Wednesday. The currency cross is trading around 171.40 during the Asian hours on Thursday.
New
update2025.07.10 11:57

Japan's Akazawa: Dollar's status as global reserve currency remains solid

Japan's top trade negotiator, Ryosei Akazawa, said on Thursday that the US Dollar's (USD) status as global reserve currency remains solid. Akazawa added that Japan is unlikely to face US demands to prop up Japanese Yen as the USD is more susceptible to selling.
New
update2025.07.10 11:35

Japanese Yen draws support from reviving safe-haven demand amid trade concerns

The Japanese Yen (JPY) is building on the previous day's goodish recovery from over a two-week low and scaling higher for the second consecutive day against a broadly retreating US Dollar (USD).
New
update2025.07.10 11:35

US Dollar Index weakens below 97.50 on fresh tariff threats

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, retreats from near a two-week high to 97.30 amid tariff threats after US President Donald Trump unveiled a new round of tariff demand letters. 
New
update2025.07.10 11:24

US President Donald Trump sets 50% tariffs on copper, effective August 1 - Reuters

US President Donald Trump said Wednesday that the new 50% tariff on US copper imports, which he had announced the previous day, will take effect on August 1, per Reuters. The decision was made after he received a national security assessment. 
New
update2025.07.10 11:14

Australian Dollar advances due to persistent inflation risks, subdued US Dollar

The Australian Dollar (AUD) continues its winning streak for the third successive session on Thursday. The AUD/USD pair gained ground after the Reserve Bank of Australia (RBA) surprisingly decided to maintain the Official Cash Rate (OCR) at 3.85% earlier this week.
New
update2025.07.10 10:48

PBOC sets USD/CNY reference rate at 7.1510 vs. 7.1541 previous

The People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Thursday at 7.1510 as compared to the previous day's fix of 7.1541 and 7.1757 Reuters estimate.
New
update2025.07.10 10:15

NZD/USD strengthens above 0.6000, eyes on US Initial Jobless Claims release

The NZD/USD pair extends the rally to around 0.6010 during the early Asian session on Thursday. The New Zealand Dollar (NZD) strengthens against the Greenback as the Reserve Bank of New Zealand struck a cautious tone in its latest policy meeting.
New
update2025.07.10 10:09

WTI drifts lower to near $67.00 on rising Crude Stockpile in US, tariff uncertainty

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $67.15 during the early Asian trading hours on Thursday. The WTI price loses ground amid concerns over weakening demand following a surprise increase in US crude inventories. 
New
update2025.07.10 08:57

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel