Gold Daily | Gold Holds Steady on Fed Rate Cut Hopes Amid Economic Uncertainty and Trade Tensions

【Latest Gold Price and Recent Trends】

Gold prices held steady around $3,642.65, supported by expectations of a likely Federal Reserve rate cut this week. Recent trends showed a 1.6% rise last week, hitting a historic high of $3,673.95 on Tuesday. The rise was influenced by weak Chinese economic data, increasing expectations of stimulus measures, and limited progress in U.S.-China trade talks. A strong dollar and profit-taking are capping gains.

【Technical Analysis】

Gold remains in a high-level consolidation on the daily chart with buyers cautious due to an RSI at 77, indicating overbought conditions. Key resistance is at the historical high of $3,675, with further resistance at $3,700 and $3,750. Support lies at $3,600, and a break could lead to $3,578 and possibly $3,550.

【Market Sentiment and Economic Background】

Market sentiment is influenced by the expected Federal Reserve rate cut, with a 25 basis point reduction widely anticipated. Speculation of a 50 basis point cut is also present. Economic uncertainties and robust gold demand are driving record levels in gold ETFs, with U.S. ETF assets reaching a historic $215 billion. Weak U.S. labor data and fears of a recession are bolstering gold prices. The ongoing U.S.-China talks, along with retail sales data, are key focus areas for traders.

【Analyst Opinions】

Tim Waterer suggests that profit-taking and a strong dollar pressure gold, though the long-term bullish outlook remains. Giovanni Staunovo of UBS sees strong demand potentially driving prices to $3,900 by mid-2026. The technical overbought status may prompt further consolidation before a potential upward move.