Dollar and Oil Strengthen; Gold Pressured Below US$4,400
Gold prices weakened to below US$4,400 per troy ounce, hovering around US$4,391 on Tuesday (Aug 18). Pressure stemmed from a strengthening US dollar, rising oil prices, and inflation concerns that kept the possibility of a Federal Reserve interest rate hike on the table.
US-Iran tensions and Houthi attacks near the Bab el-Mandeb Strait also heightened risks to energy supplies. Markets are now awaiting the FOMC minutes on Wednesday for clues regarding the Fed's future policy direction. As long as the US dollar and yields remain strong, gold risks staying below US$4,400, although geopolitical risks could limit the downside.
Gold price at the time of this analysis: $4,394
- Buy if the price moves to $4,396
- Sell if the price moves to $4,389
Resistance 2: $4,406
Resistance 1: $4,399
Support 1: $4,385
Support 2: $4,378
Note: This article is analytical in nature and not a definitive recommendation. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id