Gold Struggles Below $3,150 Ahead of Powell

Gold is trying to recover, but it’s not convincing anyone yet.

After dipping to its lowest level since April 10, XAU/USD bounced roughly $20–30 early Friday. But it’s still trading under $3,150, down for the second day straight, and the macro backdrop isn’t offering much relief.

The U.S. Dollar isn’t rallying, but gold isn’t catching a bid either. That says a lot.

Why? Because traders are caught in limbo ahead of two major catalysts:
U.S. Producer Price Index (PPI) and a speech from Fed Chair Jerome Powell.

Here’s What’s Weighing on Gold Right Now

1. US-China trade optimism
Tensions are cooling, and that’s bad for gold. As talks progress between the U.S. and China, safe-haven demand fades. Less fear = less need for gold.

2. Stronger global risk tone
Risk assets are back in favor. Stocks are holding up, and the market mood feels less defensive. That shift pulls capital away from gold and into equities and yield-bearing plays.

3. Rising US yields
Gold doesn’t pay interest, so when Treasury yields rise, it loses its appeal. With the 10-year yield climbing again, holding gold gets harder to justify.

4. Fewer Fed cuts on the table
The Fed pivot isn't looking as aggressive anymore. Strong U.S. data and sticky inflation have traders dialing back rate cut bets. That’s removed another key bullish case for gold.

5. A technical break below $3,200
This one matters. Gold dropped through key levels, including the $3,300 and $3,200 break That’s turned structure bearish. Sellers are now in control unless bulls reclaim ground fast.

What Comes Next?

With PPI and Powell on deck, gold’s next move will depend on how markets interpret inflation and the Fed’s tone.

• A hot PPI report could drive yields even higher, bearish for gold.

• A dovish Powell could provide some temporary relief, but it may not be enough to flip sentiment unless paired with softer data.

Until then, the technical bias stays heavy.

GOLD Chart Breakdown

The break below $3,200 and failure to reclaim $3,170 has flipped the structure bearish. Although it is showing signs of bounce from that trendline.

Gold now faces:

• Immediate support at $3,140–$3,130

• A risk of falling to $3,100, then $3,060 if momentum continues

• Resistance overhead at $3,168–$3,200 — and major sellers likely at $3,230

Every rally so far has been short-lived. Unless bulls push price back above $3,230, sellers remain in control.

The very key signal to watch out for is the break below that 3 month trendline for downside continuation.

Final Thoughts: Don’t Jump the Gun

Yes, the bounce off the lows is notable, but it’s not enough.

This isn’t a “buy-the-dip” environment. Not with key levels broken and macro headwinds still in play.

Let the data hit. Let Powell speak.
Then watch how price reacts, not just where it is.

Gold isn’t done falling unless buyers step up with conviction, not just reflex.