Gold Daily | Gold Faces Third Weekly Drop Amid Strong Dollar and Fed Policy Concerns

【Latest Gold Price and Recent Trends】

Gold prices are stable around $3295 per ounce, but this week has seen a 1.4% decline, potentially marking the third consecutive weekly drop. The stronger dollar and cooling expectations for Fed rate cuts weigh on gold, though new US tariffs provide some support.

【Technical Analysis】

Gold's bearish trend continues, with the 21-day SMA dropping below the 50-day SMA confirming a bearish crossover. The RSI remains below the midline, indicating further downside potential. Key support lies at $3270 per ounce, and failure to hold above this may trigger a decline towards $3248. Resistance is seen at $3340, with a key psychological level at $3300.

【Market Sentiment and Economic Background】

The dollar index reached 100.19, its highest since May 29, spurred by strong US economic data and reduced expectations for Fed rate cuts. Despite Trump's criticism of Fed Chair Powell and trade tensions, the Fed maintained its current rate, focusing on inflation and labor market stability. Upcoming US employment data will be crucial, with market expectations for July nonfarm payrolls to slow down. The US trade policies add uncertainty, supporting gold's safe-haven appeal amid global economic concerns.

【Analyst Opinions】

Analysts anticipate potential support for gold due to trade uncertainties despite immediate pressure from the strong dollar. If the US nonfarm payroll data surprises, either weak or strong, it could significantly impact gold's price trajectory. The long-term outlook remains favorable for gold, especially if the Fed eventually adopts a more dovish stance.