Pressured by a Strong Dollar, Is Gold Ready to Bounce from the Support Zone?
Global gold prices (XAU/USD) are trending defensively today after weakening for the past three days. The strengthening US dollar is pressuring the precious metal's performance, as markets begin to reduce expectations of a Fed interest rate cut at its December meeting. Several Fed officials have signaled their uncertainty about rushing to lower interest rates, diminishing gold's appeal as a non-yielding asset. However, concerns about a US economic slowdown following the longest government shutdown in history continue to reinforce gold's role as a hedge, preventing selling pressure from fully abating.
Technically, gold appears to be struggling to break through the resistance zone around US$4,150–4,200 per troy ounce, which currently serves as the upper limit of price movement. On the downside, the market is still closely monitoring the support area around US$4,050–4,000, which serves as a key barrier to prevent the correction from deepening. As long as prices remain above this zone, the broader gold trend is considered healthy, merely entering a rest or consolidation phase after a previous strong rally.
Market participants are now adopting a cautious stance while awaiting the release of delayed US economic data, particularly the jobs report and the release of the Fed meeting minutes. This data and policy signals are expected to determine the next direction: whether gold will be under pressure again if the US dollar strengthens further, or rebound sharply if the data revives hopes for an interest rate cut. For now, gold is at a crossroads—and the market is wondering whether buyers will succeed in holding the support line, or whether sellers will prevail and drag prices lower.
Source: Newsmaker.id
