Is Gold Price Really Rising Ahead of Jerome Powell’s Speech? Here's the Analysis

2025-07-23

The price of gold has caught investors’ attention again, just days before Federal Reserve Chair Jerome Powell is set to deliver a crucial speech on July 22. Is gold price truly gaining strength ahead of Powell’s remarks, or is the rally a short-lived reaction to broader economic factors? Read more here!

This article breaks down the latest movements in the gold market, explores the possible implications of Powell’s speech, and looks at what traders and long-term investors should expect next.

Gold Prices Rally on Weak Dollar and Fed Signals

Gold prices have been gradually rising in recent sessions, with XAU/USD reaching a fresh monthly high of $3,434.

This upward momentum is largely attributed to the weakening US dollar and speculation that the Federal Reserve may soon begin lowering interest rates.

On July 18, 2025, the price of gold rose in North American trading, supported by market participants booking profits ahead of the weekend and a softening dollar.

A dovish tone from Federal Reserve officials, especially a statement from Governor Christopher Waller supporting a rate cut in July, has added to the bullish sentiment.

These signals have put downward pressure on US Treasury yields, making gold, a non-yielding asset, more attractive.

The US Dollar Index (DXY) dropped by 0.13% to 98.48, giving further room for XAU/USD to climb.

Technical Indicators Support Bullish Momentum

gold price analysis.

From a technical analysis perspective, gold continues to exhibit a bullish trend.

Daily charts show a consistent pattern of higher highs and higher lows, supported by short-term moving averages crossing above medium-term ones.

According to Andy Nugraha, a senior analyst at Dupoin Futures Indonesia, these patterns indicate that buyers are still dominating the market. He suggests that minor pullbacks are likely just consolidation phases before the next leg higher.

Andy projects that if the bullish pressure continues, XAU/USD may rise further to around $3,364.

However, if the market faces a correction or if the dollar regains strength, support is expected near $3,346. These levels are being closely watched by traders to determine strategic entry and exit points.

Investors Await Powell's Speech

The upcoming speech by Jerome Powell is the central focus for gold investors. Scheduled for July 22, Powell’s remarks are expected to provide critical insight into the Federal Reserve's monetary policy direction.

If Powell reinforces the dovish stance suggested by other Fed officials, gold prices could receive another boost.

On the other hand, if his tone shifts toward caution or highlights lingering inflation concerns, markets could adjust their expectations, putting downward pressure on the precious metal.

Traders are also paying attention to US inflation data and global macroeconomic signals, especially amid continued geopolitical uncertainties.

Trade Tariff Deadline Adds More Uncertainty

Adding to the volatility is the fast-approaching deadline for US trade tariffs on August 1. The US Secretary of Commerce, Howard Lutnick, recently confirmed that the tariff implementation date is final. This has heightened market anxiety and strengthened demand for safe-haven assets like gold.

Uncertainty around US trade relations with key global partners, including the European Union, remains a supporting factor for gold price update. Any escalation in trade tensions could further reduce investor appetite for risk, boosting interest in precious metals.

Gold Price Forecast: Key Levels to Watch

In the short term, gold’s movement is expected to remain volatile.

According to analysts at Prithvifinmart and Mehta Equities, gold has key support levels between $3,350 and $3,370, while resistance stands at $3,424 to $3,442.

In the Indian market, MCX Gold has support near ₹98,850 ($1,144.39) and resistance near ₹99,650 ($1,153.65).

Should the price of gold break above $3,451, the high from June, it could open the door for a potential rally toward the April peak around $3,500. However, failure to maintain levels above $3,370 could signal a short-term pullback to around $3,280.

Market Reaction to Recent Economic Data

The latest preliminary Consumer Sentiment Index from the University of Michigan for July came in at 61.8, slightly above expectations.

This suggests growing optimism among US consumers, a development that usually supports the dollar.

However, this sentiment data has not been strong enough to counter gold’s current momentum, at least for now.

Despite profit-booking in some futures contracts, the underlying support for gold remains firm.

The mixed macroeconomic backdrop, combined with unclear signals on inflation, interest rates, and global trade, continues to make gold an appealing option for hedging and diversification.

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FAQ

What is the gold price right now?

Currently, the gold price per gram is US$107.72, and per ounce (1oz) is US$3,350.50. One kilogram of gold is priced at US$107,720.95. There has been no change in the last 24 hours.

How much is 1 gram of gold in Indonesia?

As of now, the price of 1 gram of gold (GRAMG) in Indonesian Rupiah (IDR) is approximately Rp1,757,320.

How much is 1g of 22 carat gold today?

The price of 1 gram of 22-carat gold is £66.96, and 1 ounce is £1,898.28.

Is it a good time to buy gold?

Whether it's a good time to buy gold depends on your personal situation and investment goals. Current market conditions suggest it might be a good time to consider it for diversifying your investments, as gold prices have recently risen due to inflation and global uncertainty, a trend some analysts believe could continue. However, gold prices can change, so it's important to understand your risk tolerance and investment strategy before buying.

How much is 1 kg of gold?

The current price of 1 kilogram of gold is approximately $110,252 USD or €93,867 EUR. These figures are approximate and can change, as gold prices constantly fluctuate.