Gold Loses Momentum As Dollar Rebounds And ETF Outflows Weigh On Sentiment

(MENAFN- The Rio Times) The gold market faced strong pressure over the last 24 hours, according to official spot and futures charts. Latest data shows gold spot prices declined to $3,324.61 per ounce by early morning July 30, 2025, after testing a recovery during the New York session the prior day.

Volatility remained elevated as traders responded to a resilient U.S. dollar, disrupted ETF flows, and shifting global risk sentiment. Throughout the previous session, gold attempted to hold gains near $3,330 but failed to build further.

Volume on the major futures bourses grew as investors hedged portfolios ahead of major U.S. central bank signals expected later today. According to exchange data, trading volumes surged at both the London and New York markets, reflecting heightened uncertainty.

However, Chinese gold ETFs experienced notable outflows, weakening one of the formerly robust demand pillars for gold and adding weight to the price decline.

Macroeconomic pressures contributed heavily to the market's recent movements. The U.S. dollar appreciated broadly after manufacturing data beat consensus forecasts and as traders braced for the Federal Reserve's policy meeting.



This currency strength made gold - priced in dollars - less attractive to international investors, especially after the previous week's geopolitical and trade headlines briefly subsided.

Dealers cited waning safe haven flows, especially with the announcement of a new U.S.-EU trade agreement and muted progress in U.S.-China negotiations.

Technically, gold sits at a crossroads. Daily charts highlight that the price struggles to stay above key moving averages, particularly the 50-day simple moving average near $3,325.

The MACD histogram has turned negative, showing bearish momentum as its signal line crosses lower. The RSI indicator is drifting below the 50 mark, signaling neither strong oversold nor overbought conditions, but suggesting waning buying power.

Bollinger Bands show price constriction, reflecting a decrease in volatility and a neutral-to-bearish stance. On the four-hour chart, price action underperforms the daily averages, with a slight descending pattern.

Here, the MACD confirms a bearish divergence and RSI values hover around 46, underscoring a lack of short-term enthusiasm. The thin trading bands and decreased volatility signal a potential for sharp moves, but so far, sellers have remained in control.

The Global Liquidity Index NDQ, depicted as the yellow line, trended sideways to lower. This index tracks worldwide market liquidity and its decline indicates tighter conditions for risk assets, which traditionally pressures gold prices lower.

Looking ahead, gold traders watch critical support at $3,310. If this level breaks, technical selling could intensify. Conversely, reclaiming $3,335 would be necessary to regain upward momentum.

The outcome hinges on the U.S. central bank's policy stance, currency moves, and equity risk appetite, making the current environment highly reactive and driven by official data and statements.

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