Gold Daily | Gold Prices Dip 0.4% Amid Fed's Hawkish Stance and Economic Uncertainties

【Latest Gold Price and Recent Trends】

Gold prices declined 0.4% to $2,753.86 per ounce as of the latest report. The recent dip follows the Federal Reserve's decision to maintain interest rates, which was anticipated by the market. The Fed's hawkish stance and lack of a clear timeline for further rate cuts have reduced gold's appeal.

【Technical Analysis】

Gold prices are experiencing volatility, with technical indicators suggesting a neutral outlook. Prices are fluctuating between $2,755.00 resistance and $2,731.50 support, indicating a potential for both upward and downward movements. Analysts suggest monitoring these levels to determine future trends.

【Market Sentiment and Economic Background】

The market remains cautious as traders weigh the impact of the Fed's policy and President Trump's trade strategies, which include potential tariffs on key imports. Such policies have inflationary implications, potentially influencing Fed decisions to maintain higher interest rates. The gold market is affected by these uncertainties, with previous highs driven by low-interest environments and geopolitical tensions. Additionally, the recent introduction of a low-cost AI model by China's DeepSeek has caused stock market turmoil, prompting some investors to sell gold to offset losses.

【Analyst Opinions】

Analysts express concern over Trump's tariff threats, which could exacerbate inflation concerns and affect economic growth. While the Fed is expected to keep rates unchanged, any future rate cuts could support gold prices. The prospect of a strong year for gold in 2025 is noted, given ongoing economic uncertainties and inflationary fears. However, demand for other precious metals like platinum and palladium remains weak, reflecting low demand improvements. Some analysts foresee potential upward movement for gold towards $2,800 if supportive policies are hinted at by the Fed.