Gold Price Forecast: XAU/USD jumps to near $3,370, following base-building near 20-EMA.

Gold price rises to near $3,370 due to a slight correction in the US Dollar.
Traders pare Fed dovish bets, following US CPI report for June.
The impact of Trump’s tariffs has started feeding into the economy.

Gold price (XAU/USD) advances to near $3.370 during the European trading session on Monday. The precious metal gains as the US Dollar (USD) corrects after failing to extend its recent upside move. Technically, lower US Dollar makes the Gold price an attractive bet for investors.

At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, retraces to near 98.15 from the four-week high around 99.00.The US Dollar faces selling pressure even though traders see a lesser chance that the Federal Reserve (Fed) will cut interest rates in the policy meeting in September. According to the CME FedWatch tool, the probability for the Fed to reduce interest rates in the September meeting has declined to 58.5% from almost 70% seen a month ago. The tool also shows that the Fed will leave borrowing rates steady in the policy meeting scheduled for next week.

Traders pare Fed dovish bets after the release of the United States (US) Consumer Price Index (CPI) data for June, which showed that the impact of sectoral tariffs imposed by President Donald Trump has started flowing into prices.

Gold technical analysis

Gold price trades in a Symmetrical Triangle formation on a daily timeframe, which indicates a volatility contraction. The upward-sloping trendline of the above-mentioned chart pattern is placed from the May 15 low of $3,120.83, while its downward-sloping border is plotted from the April 22 high around $3,500

The 20-day Exponential Moving Average (EMA) around $3,340 acts as a key support area for the Gold price.

The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating a sideways trend.

Looking up, the Gold price will enter in an unchartered territory if it breaks above the psychological level of $3,500 decisively. Potential resistances would be $3,550 and $3,600.

Alternatively, the Gold price would fall towards the round-level support of $3,200 and the May 15 low at $3,121, if it breaks below the May 29 low of $3,245