Gold Daily | Gold Hits Record High on Rate Cut Hopes and Weaker Dollar, Testing $3,700 Resistance

【Latest Gold Price and Recent Trends】

On Tuesday, international gold prices reached a historic high of $3,688.41 per ounce due to a weaker dollar and expectations of a rate cut by the Fed. The gold price briefly hit $3,697.05, approaching the $3,700 mark. The dollar index fell to a two-month low, supporting gold prices as traders anticipate a 25 basis point Fed rate cut, with some betting on a 50 basis point cut.

【Technical Analysis】

Gold continues to show bullish momentum, with key resistance at $3,700. The RSI indicates an overbought condition, suggesting a potential short-term pullback, but the overall trend remains upward. On the 4-hour chart, buying interest is expected near support levels, while sellers eye opportunities if the price breaks below key trend lines.

【Market Sentiment and Economic Background】

The market is focused on the Fed's upcoming decision, with expectations of a dovish outcome supporting gold. A weaker dollar and lower U.S. Treasury yields have also buoyed gold, which is seen as attractive in a low-interest-rate environment. Political pressure from President Trump on the Fed adds to expectations for lower rates. Despite robust labor market data showing resilience, rate cut expectations persist.

【Analyst Opinions】

Analysts suggest that the current environment favors gold, with its appeal as a hedge against economic uncertainty. UBS's Giovanni Staunovo and others highlight that low real yields support gold's upward trajectory. Carlo Alberto De Casa points to expectations of continued Fed rate cuts into next year as a bullish factor for gold.

【Opinions】

BlackRock's Russ Koesterich recommends gold as a hedge against market volatility and potential economic uncertainty, advising an allocation of 2% to 4% in investment portfolios. He notes that even modest stock market volatility could benefit gold, as historical data shows a strong correlation between rising volatility and gold's relative outperformance.