Gold Drops to $4,010: Strong Dollar & US-China Deal Pressure
Gold prices weakened to around $4,010 an ounce on Friday, poised for a second weekly decline. Pressure stemmed from fading hopes for a Fed rate cut after Jerome Powell asserted that a December rate cut was “not guaranteed,” keeping the dollar at a high level and dampening gold buying appetite. Safe-haven sentiment also eased after the US and China reached a one-year trade truce on rare earths, easing supply concerns for the high-tech industry.
Nevertheless, gold remains on track for monthly gains thanks to support from central bank purchases. A World Gold Council report showed central banks purchased 220 tonnes of gold in Q3, up 28% from the previous quarter, with Kazakhstan being the largest buyer and Brazil adding gold for the first time since 2021. These factors helped cushion pressure from a strong dollar and expectations of higher US interest rates for longer.
At the time of this analysis's release, the gold price was at $4,008.
- Buy if the price is around $4,015.
- Sell if the price is around $4,001.
Resistance 2: $4,029.
Resistance 1: $4,022.
Support 1: $3,994.
Support 2: $3,987.
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
