Trump Makes Gold Hard to Fall
Global gold prices experienced a slight increase in today's trading, despite being previously dragged down by the strengthening US dollar and uncertainty about the direction of monetary policy from the Federal Reserve.
The strengthening US dollar directly pressured gold prices because this precious metal is priced in USD. In other words, gold became relatively more expensive for international buyers.
Investors are now turning their attention to President Trump's decision to appoint new officials to the Federal Reserve, which could influence future interest rate policy. According to CME FedWatch data, the probability of a Fed rate cut in September has reached 87%, driven by weaker-than-expected US employment data.
On the demand side, the World Gold Council (WGC) reported that global gold demand rose 3% compared to last year, supported by inflows into gold ETFs and purchases by central banks. However, demand from the jewelry sector, particularly in India and China, actually decreased due to high prices and a weakening domestic economy.
Technically, gold remains in a strong bullish trend. The Relative Strength Index (RSI) indicator is in the 60–62 range, indicating positive momentum, although it is approaching overbought territory. The 50- and 200-day moving averages continue to support the uptrend, and gold prices are above the EMA lines, which act as dynamic support.
The nearest resistance level is at $3,380–$3,390, while strong support is seen in the $3,340–$3,350 area. If the price can break through this resistance, the chances of gold strengthening again towards $3,400 increase.
Overall, despite today's slight weakening of gold prices, medium- to long-term sentiment remains positive. Uncertainty over interest rate direction, geopolitical pressures, and demand from institutional investors remain the main drivers.
Source: Newsmaker.id
