Gold Remains Resilient Amid Dollar Pressure!
Gold prices traded steadily in the Asian session on Thursday (November 6th), after strengthening earlier this week. Strong support from physical demand in Asia and growing concerns about the direction of the global economy kept this precious metal on a positive track despite a slight strengthening of the US dollar.
According to the latest report by the CME Group, gold demand from Asia continues to show significant growth, both for investment and jewelry needs. "Asia has become a major driver of global gold trading and derivatives," the report stated. Data from the World Gold Council also shows that countries such as China and India remain the largest contributors to global physical gold consumption.
However, some analysts warn that excessively rapid gold price increases are beginning to depress purchasing activity in several key Asian markets. According to a report by Energy News Asia, the price surge has slowed retail demand in China and Singapore, particularly for jewelry.
Meanwhile, the strengthening US dollar and rising US Treasury bond yields are also limiting gold price gains. "As yields rise, the opportunity cost of holding non-interest-bearing assets like gold also increases, making investors more cautious," said StanChart Wealth Insights in its analysis today.
Fundamentally, the gold market continues to benefit from expectations that the Federal Reserve will cut interest rates further in the first quarter of 2026. The prospect of further monetary easing has made safe-haven assets like gold popular again, especially amid geopolitical uncertainty and weakening global growth.
Technically, the global gold price is currently trading around US$3,970-US$3,980 per troy ounce, with strong support at US$3,940 and resistance at US$4,050-US$4,100. Technical analysts from Economies.com noted a positive signal on the RSI indicator, indicating potential for further recovery. If the price can hold above the support level, the opportunity to continue the upward trend to the US$4,050 area is wide open.
"Overall, gold in today's Asian session is likely to move in a consolidation pattern with a moderate bullish bias," said global market analysts from TradingView. "As long as the price remains above US$3,950, the short-term trend remains upward."
With a combination of continued strong physical demand, expectations of interest rate easing, and global uncertainty, market participants believe gold will remain a top choice for Asian investors in the coming weeks — although pressure from the US dollar could trigger short-term volatility.
Source: Newsmaker.id
