Gold prices have recently stalled near the key 50-day moving average as traders await crucial signals from Federal Reserve Chair Jerome Powell. After reaching a local peak just above $3,430 per ounce last week, gold entered a corrective phase, slipping below the $3,345 support and currently trading around $3,310–$3,320. This near-term weakness is primarily driven by robust US economic data, expectations of a hawkish Federal Reserve stance, and a stronger US dollar.

Technical charts reveal a clear bearish flag formation, with increased volatility indicating downward momentum. Continued weakness below $3,345 keeps the risk of a further decline towards the $3,280–$3,300 region. Should gold prices drop beneath Monday’s low near $3,295, support is expected at $3,245—a key target for this corrective move. On the upside, bulls will need to reclaim resistance at $3,345 and $3,360 to shift the short-term structure in their favor, opening the possibility for a rebound towards $3,400 or beyond.

Market participants are cautious ahead of the upcoming US GDP data release and the Fed’s policy decision later today. Any dovish signals or softer-than-expected economic figures could weaken the dollar and reignite demand for gold. In contrast, if Powell maintains a hawkish tone with hints of further rate hikes or extended higher rates, pressure on gold may intensify.

Broader analyst forecasts for gold in 2025 remain optimistic, citing geopolitical risks, persistent inflation concerns, and ongoing central bank demand. While short-term volatility is likely as markets respond to monetary signals, the long-term view supports robust prices and potential new highs within the year. For now, gold traders remain on watch, ready to react to upcoming economic policy cues that could shape the next major move.