Gold prices are currently defending the crucial $3,300 level, but recent market dynamics raise questions about the sustainability of this support. After a period of rallies, the gold market has begun to show signs of weakness, with prices recently drifting to around $3,335. This downward move comes as optimism grows over global trade agreements, especially between the US and the EU, diminishing gold’s traditional appeal as a safe-haven asset.

Market sentiment has shifted to risk-on following the resolution of trade tensions and the announcement of a 15% blanket tariff on transatlantic goods. Additionally, anticipation that the US Federal Reserve will hold interest rates steady adds to the pressure on gold, as higher rates generally deter investment in non-yielding assets like precious metals.

From a technical perspective, gold’s recent price action mirrors patterns seen during the end of previous major bull markets, most notably in 2011–2013. While gold previously rallied after breaking support, this latest surge is viewed by many analysts as a verification of a broader bearish trend rather than the start of a sustained move higher. This back-and-forth pattern increases the risk of a further drop if support around $3,300 gives way.

On the sentiment front, traders appear indecisive, with positioning data showing a near-even split between bulls and bears. Such uncertainty often precedes larger market moves, as participants await clearer direction.

Looking ahead, if the $3,300 support fails to hold, gold could be vulnerable to more pronounced declines. Conversely, any renewed global uncertainty or dovish signals from central banks could spark another bid for safety, providing gold some temporary relief. For investors and traders, close attention to both macroeconomic events and technical levels remains essential in navigating the evolving gold landscape.