Strong Dollar, But Gold's Bullish Momentum Remains!
Global gold prices strengthened in today's Asian trading, driven by a strengthening US dollar and market expectations regarding the direction of Federal Reserve monetary policy. Although medium-term support remains strong from safe havens and central bank buying, macroeconomic pressures have kept gold's movement limited in a consolidation zone.
The strengthening US dollar against most major currencies is pressuring gold prices, making the precious metal more expensive for foreign buyers. Furthermore, high bond yields are also increasing the opportunity cost of holding non-interest bearing gold.
On the other hand, the market is still anticipating signals of monetary easing from the Fed. US inflation and employment data showing a slowdown could be a positive catalyst for gold, but analysts believe that gold's short-term upward momentum has begun to weaken.
"Investors continue to view gold as a hedge against economic and geopolitical risks, but must be mindful of pressure from the dollar and bond yields," said FXEmpire analysts.
Technically, the spot gold price is currently in the range of US$3,900–US$4,000 per troy ounce. Key support areas are located at US$3,900–US$3,950, while key resistance is at US$4,050–US$4,100.
The RSI and MACD indicators indicate that upward momentum is weakening after the rally in recent weeks, so the market could potentially experience consolidation or a minor correction before determining its next direction.
A breakout above US$4,050 could open the door to a rally towards US$4,100–US$4,150.
If support at US$3,950–US$3,000 fails to hold, the price could fall to US$3,850 before finding new ground.
Today's gold price reflects a market sensitive to dollar movements and Fed policy signals. Investors are advised to monitor the latest US economic news, such as the ADP report, the ISM Services report, or comments from Fed officials, as each of these catalysts could influence gold's short-term direction. "The gold market remains attractive as a hedge, but short-term volatility is high, making entry timing crucial," said a MarketPulse analyst.
Source: Newsmaker.id
