Geopolitics Eases, but Central Banks Remain Supportive of Gold
Global gold prices tended to weaken in this morning's trading after safe-haven sentiment waned due to positive developments in the geopolitical arena. However, support from global central bank purchases still provides a foundation for the precious metal's strength in the medium term.
Fundamentally, the market responded to news that the United States had canceled its planned 39 percent tariff on gold bar imports from Switzerland. This move eased market concerns that had previously triggered a price surge. Furthermore, talks between the US and Russia, which led to a de-escalation in tensions, also dampened demand for gold as a safe haven asset.
On the other hand, large-scale buying by central banks in various countries remains a supportive factor for prices. However, analysts believe that in the short term, gold has the potential to move within a narrow price range until a new, stronger trigger emerges.
From a technical perspective, the price of gold is currently hovering around US$3.30 per troy ounce. Most medium- to long-term moving averages (MAs) are signaling a sell, while momentum indicators like the Relative Strength Index (RSI) are at levels 40–64, indicating potential further pressure if the price breaks through support at US$3,330. The nearest resistance is located in the US$3,370–3,400 range.
Given these conditions, market participants are advised to pay attention to key technical levels, as a break below US$3,340 could open the door to further declines, while holding above US$3,370 could limit consolidation or further upside.
Source: Newsmaker.id
