Gold hit a notable decline of 1% this morning as it touched a one-week low of $3300. Gold is currently waiting for some positive momentum as it eyes breaking then holding above the SMA 9 on the 4-hour chart to regain its upward march.

Gold is currently trading above the weekly pivot point at $3315, where holding above it could push the yellow metal prices towards resistance levels of $3386 then $3437.

On the downside, if gold prices fail to cling above the aforesaid weekly pivot point, followed by a stability beneath the breached bearish trendline, it will lose its positive momentum, thereby probably retesting support levels near $3265 then 3194.

From a fundamental standpoint, Trump stated that the White House will start sending letters to U.S. trading partners outlining the new tariff rates, noting that indications regarding the kickoff of new U.S. tariffs could be on August 1, instead of July 9, have provided some relief to markets.

The Federal Reserve will release its latest policy meeting on Wednesday, with investors keen to gain a deeper understanding of how policymakers see interest rates evolving over the remainder of the year.

In June, the Fed opted to keep the borrowing cost unchanged at a target range of 4.25% to 4.50%, arguing that a wait-and-see approach remains appropriate as the impact of Trump’s tariffs on the broader economy becomes clearer.

On the economic data front, U.S. jobless claims data, which is expected to show a rise to 235,000 from a previous of 233,000. If the data comes in higher than expected, it could raise concerns about the health of the labor market, while the opposite is true.