Profit-Taking Weighs on Gold Prices
Gold prices weakened during Friday's European trading session as investors engaged in profit-taking following a sharp rise in the previous session. A rebound in the US dollar also diminished gold's appeal for holders of other currencies.
Pressure on gold mounted as the market refocused on the Federal Reserve's policy trajectory. While the Fed held interest rates steady at this week's meeting, it provided no clear signals regarding its next move, leaving policy uncertainty hanging over the market.
Market participants continue to weigh the likelihood of an interest rate hike at the September meeting. Expectations of higher rates could bolster the dollar and bond yields while reducing gold's attractiveness, given that the precious metal yields no return.
However, gold's decline has been tempered by geopolitical tensions in the Middle East, which are sustaining demand for safe-haven assets. Despite the daily correction, gold remains on track for its first monthly gain in five months, supported by bargain hunting and concerns regarding global economic and geopolitical risks.
Gold price at the time of this analysis: $4,059
- Buy if the price moves to $4,050
- Sell if the price moves to $4,060
Resistance 2: $4,085
Resistance 1: $4,075
Support 1: $4,043
Support 2: $4,035
Note: This article is analytical in nature and does not constitute definitive advice. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
