Gold drops to three-week low as dollar strengthens on US-EU trade agreement

Gold extended its decline for the fourth consecutive session on Monday, continuing the slide from last week’s high at \$3438.

The metal dropped to a three-week low, pressured by a stronger U.S. dollar following the US–EU trade agreement. This pushed prices below key technical levels at \$3340 (top of the daily Ichimoku cloud) and \$3330 (triangle support line), with fresh selling nearly testing the psychological \$3300 support.

While oversold conditions provided some immediate relief, the bearish bias remains intact, especially if Monday’s close holds within the cloud and below the triangle’s lower boundary—reinforcing downside pressure.

The drop has dragged gold toward the lower end of its broader consolidation range (\$3500–\$3120). However, a decisive break below \$3300 and the cloud base at \$3285 is needed to confirm a fresh bearish signal and avoid a false breakout scenario, especially after last week’s brief move above the triangle’s upper boundary.

The daily chart structure has weakened, with moving averages flipping into a bearish configuration. However, 14-day momentum still hovers near the neutral line, reflecting indecision.

Market focus now turns to the upcoming Federal Reserve policy decision later this week, which is expected to deliver fresh directional cues for gold.

Res: 3326; 3345; 3365; 3370
Sup: 3300; 3285; 3265; 3246