3:41 PM · 8 July 2025

BREAKING: Gold dips 1% and tests long-term support 📉

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The US dollar is clearly gaining in value today, while the price of gold is falling by about 1%. The decline in precious metal prices is related to improved investor sentiment following reports of Japan seeking concessions in trade talks between the US and optimistic comments on negotiations with the European Union on tariffs. A stronger dollar reduces the attractiveness of gold as a safe haven, especially when there are hopes on the market for an easing of global trade tensions.

The extension of the US deadline for introducing new tariffs and the prospect of several trade agreements being concluded in the coming days are causing capital to flow out of the gold market towards riskier assets. In addition, positive data from the US labor market has reduced expectations of rapid interest rate cuts by the Fed, which also supports the dollar and puts pressure on gold prices.

 

Gold is currently testing the 50-day EMA (the blue curve on the chart), which has repeatedly served as a key support level for the instrument in the past. This technical level attracts significant investor attention—holding above it could trigger a rebound, while a decisive break below might signal a deeper correction. Source: xStation

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