Gold Strengthens, Supported by a Weaker Dollar
Gold prices rose during Monday's trading (August 17), with XAU/USD returning to the vicinity of US$4,400 per troy ounce. The precious metal's gains were primarily driven by a weakening US dollar, as softer US economic data led market participants to scale back expectations for Federal Reserve interest rate hikes. This environment dampened the dollar's appeal while allowing gold to maintain its positive momentum.
Beyond the dollar and Fed policy, geopolitical uncertainty in the Middle East continues to support demand for safe-haven assets. However, rising oil prices stemming from tensions around the Strait of Hormuz remain a factor to watch, as they could reignite inflation concerns and sustain the Fed's hawkish stance.
Gold price at the time of this analysis: $4,421
- Buy if the price moves to $4,431
- Sell if the price moves to $4,407
Resistance 2: $4,465
Resistance 1: $4,441
Support 1: $4,393
Support 2: $4,369
Note: This article is analytical in nature and does not constitute a definitive recommendation. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id