Gold Pressured in Asian Session as Strong Dollar and Fed Policy Weigh on Prices
Gold prices moved lower during today’s Asian trading session, extending the corrective trend seen over the past few days. The decline comes amid a stronger U.S. dollar and rising expectations that the Federal Reserve will keep interest rates higher for longer than previously anticipated.
From a fundamental perspective, rising global energy prices—particularly oil—have reignited concerns over persistent inflation. This development has pressured gold, as markets now see reduced chances of near-term rate cuts. In a high-interest-rate environment, gold becomes less attractive compared to yield-bearing assets, especially those denominated in dollars.
The strength of the US Dollar has further weighed on gold prices. A stronger dollar makes gold more expensive for holders of other currencies, leading to softer global demand. This combination has triggered consistent selling pressure across recent sessions.
However, geopolitical tensions continue to provide some support for gold. Ongoing friction between Iran and the United States, along with risks surrounding energy supply disruptions in the Middle East, has sustained demand for safe-haven assets. That said, these factors have not yet been strong enough to reverse the current downward trend.
From a technical standpoint, gold remains in a corrective phase after failing to break through a key resistance zone around 4,890–4,900. Selling pressure is expected to persist as long as prices stay below this level. Immediate support is seen in the 4,746–4,776 range, with further downside potential toward 4,640 if bearish momentum continues. On the upside, a recovery scenario would require a decisive break above 4,846, followed by sustained bullish momentum.
Overall, gold’s movement today is still dominated by negative sentiment stemming from monetary policy expectations and dollar strength. Nonetheless, volatility remains elevated, particularly if there are significant geopolitical developments. Investors are advised to closely monitor the direction of the dollar, signals from the Federal Reserve, and Middle East dynamics, as these factors could quickly shift market direction.
Source : Newsmaker.id
