Gold Daily | Gold Hits Weekly High on Weak US Inflation, Middle East Tensions Boost Safe-Haven Demand

【Latest Gold Price and Recent Trends】

Gold prices reached a weekly high near $3,380 as weak U.S. inflation data raised expectations of a Fed rate cut this year. Spot gold rose 0.2% to $3,360.29, benefiting from geopolitical tensions in the Middle East.

【Technical Analysis】

The short-term bullish outlook for gold is strengthened by a rebound from $3,297. RSI above the midline suggests potential upside. A daily close above $3,377 could target resistance at $3,400 and the May high of $3,439. Support lies at the 21-day SMA of $3,315, with a decisive break below $3,297 opening a path to test the 50-day SMA at $3,279.

【Market Sentiment and Economic Background】

The U.S. CPI's weaker-than-expected data reinforced speculation of a Fed rate cut in September, with the probability rising to 62%. The U.S. dollar's decline made gold cheaper for holders of other currencies. Middle East tensions, particularly involving Iran, have boosted safe-haven demand for gold.

【Analyst Opinions】

Analysts note that gold needs to break $3,400 to change its current stagnant trend. Market focus is on Middle East tensions, the dollar's movement, and speculation about the Fed's rate cut timing. While short-term sentiment is bullish, long-term trends depend on policy shifts and macroeconomic factors. Institutions remain divided, with some predicting tests of $3,300 support if no rate cut materializes.