Gold prices have dropped from recent highs, reaching around $2,929 due to profit-taking, although concerns around US trade policies are expected to limit further declines. Speculation about potential Federal Reserve rate cuts may also provide support for the metal.

The US dollar’s bounce from a two-month low didn’t help the gold price much, while ongoing trade tensions are fuelling caution regarding the global economy. Recent US macro data has strengthened views for rate reductions later this year.

Near-term price consolidation may occur, with dip-buying expected around the $2,920-$2,915 zone. Additional support levels are noted at $2,900 and $2,880; a break below these could lead to further declines.

We’ve seen gold pull back after reaching fresh highs, with traders locking in profits following a strong rally. But expectations around US economic policy and interest rates should keep downside pressure in check. With concerns about trade policy still present, the metal remains well-supported at lower levels.

Recent US economic data has further strengthened views that the Federal Reserve may have to ease policy in the coming months. This expectation is keeping interest in gold intact, particularly as we inch closer to potential policy shifts. Traders are likely to remain watchful as further confirmation from policymakers could increase volatility.

Meanwhile, the dollar has stabilised after hitting a two-month low, but this hasn’t noticeably impacted gold movements. Market sentiment remains cautious, especially given ongoing global trade tensions. These factors could contribute to further safe-haven buying, preventing any deep corrections.

For now, we may see gold consolidate around the latest levels, as buyers seem eager to step in near the $2,920-$2,915 range. Should prices dip further, additional interest is expected near $2,900 and $2,880. If those levels fail to hold, further selling pressure could emerge, prompting a broader pullback in the short term.

Given the uncertainty surrounding future rate moves, traders should be prepared for sudden shifts. Any changes in expectations could fuel quick swings in price, making it necessary to stay ahead of potential catalysts.