Is the Current Gold Decline Really More Technical and Limited in Nature?
Today's gold price is stable in the range of US$4,000–4,110 per ounce, with investors awaiting confirmation of the direction of the Fed's interest rate policy. Data from various platforms shows that despite pressure from a strengthening US dollar, safe-haven demand for gold remains strong, especially amid global economic uncertainty and geopolitical turmoil.
Fundamentally, gold is supported by two factors. First, as a safe-haven metal, gold is in demand when the market is concerned about inflation and weakening fiat currencies. Second, investor expectations regarding the Fed's interest rate are determining the direction. One factor supporting this is the increase in the number of people applying for unemployment benefits yesterday. If interest rates remain high and the dollar strengthens, bearish pressure will persist. However, analysts emphasize that the recent price decline is more technical or profit-taking than weakening long-term demand.
Technically, gold is moving within a range of US$4,000–4,200 per ounce, with key support at US$4,000 and resistance at US$4,110–4,155. If the price breaks through resistance with strong momentum, there is potential for an increase towards US$4,200. Conversely, pressure from the dollar or a hawkish Fed signal could push the price down to support around US$4,000 or slightly below. Traders are advised to wait for confirmation of a breakout before entering large positions and to use stop-loss orders due to high volatility.
Today's gold outlook is neutral to slightly bullish, with the possibility of upside if negative economic or geopolitical sentiment emerges. The risk of a correction remains if the dollar strengthens or the Fed issues a hawkish signal. Market participants are advised to maintain flexibility, monitor support/resistance levels, and wait for confirmation of direction before taking significant positions.
Source: Newsmaker.id
