One More Move, Gold Could Jump or Crash!
Gold prices weakened slightly in trading on Tuesday (8/7) morning, following the easing of market concerns over the escalation of the trade war after the United States reportedly postponed the implementation of additional tariffs for three weeks to August 1, 2025. This step provides temporary relief for market players who previously took safe positions in hedge assets such as gold.
As of 08.00 WIB, the spot price of gold was recorded at US$3,332.70 per troy ounce, down around 0.11% from the previous close.
"The extension of the tariff deadline signals that there is still room for negotiation, and this is enough to suppress gold demand in the short term," quoted Edward Moya, senior market analyst at OANDA.
In addition to news of the tariff delay, market optimism regarding progress in trade negotiations between the US and its trading partners, including the European Union and Mexico, has also reduced geopolitical tensions. This has caused investors to start switching back to risky assets, such as stocks and corporate bonds, thereby reducing interest in gold.
Although tariff tensions have eased, market attention is now focused on the FOMC meeting minutes to be released this week. Investors want to see the latest signals from the Federal Reserve regarding the direction of interest rate policy, especially after last week's US labor data showed a still quite strong labor market.
If the Fed maintains a hawkish stance or slows down interest rate cuts, the potential for gold price increases will be limited.
This morning's gold price weakened as demand for safe havens fell after the US tariff deadline was postponed. However, with global macroeconomic uncertainty and the unclear direction of the Fed's monetary policy, the potential for volatility is still wide open.
Investors are advised to remain vigilant about geopolitical developments and official statements from the US central bank in the next few days as triggers for the direction of the next gold price.
Today's resistance was identified at the level of $3,353-3,416, while today's support is at $3,307-$3,232. (mrv)
Source: Newsmaker.id
