Pressured But Not Falling, Gold Holds Firm Ahead of the Fed's Decision
World gold prices remained within a narrow range in trading this morning, indicating a market consolidation phase ahead of several major catalysts. Spot gold (XAU/USD) held in the range of US$3,300 – US$3,350 per troy ounce, after testing key technical support amid the weakening dollar and global geopolitical uncertainty.
Several factors support gold prices fundamentally. Ongoing tensions between China and Taiwan, the conflict in Ukraine, and uncertainty over the outcome of US-China tariff negotiations have prompted investors to seek safe-haven assets like gold.
Furthermore, pressure on the US dollar due to high government debt and the potential for a change in the Fed's policy direction has made gold increasingly attractive. According to a survey by the World Gold Council, gold purchases by global central banks also remain high. Around 95% of central banks worldwide now use gold as part of their foreign exchange reserve strategy.
Technically, gold is currently trending sideways, with the nearest support level at US$3,275-3,280 and key resistance at US$3,350-3,365. The RSI indicator is signaling weakness, heading towards the oversold zone.
If the price breaks through resistance above US$3,365, there is a chance of further upside to the US$3,380-3,400 range. Conversely, failure to maintain support could send the price down to the key US$3,240-3,250 zone.
With fundamentals remaining bullish and technicals indicating consolidation, the gold market awaits other key economic data from the US this week to gauge the direction of the Fed's monetary policy. Market participants' primary focus will be the Fed's interest rate decision and further developments in US-China trade negotiations, which could potentially extend the tariff negotiation period.
Source: Newsmaker.id
