Gold Daily | Gold Prices Fall 4% as Strong Dollar and Fed Sentiments Pressure Market

【Latest Gold Price and Recent Trends】

Gold prices have seen a sharp decline this week, falling over 4%, closing at $2,562.92 per ounce. The decline is attributed to a strengthening dollar and cautious Fed sentiments. If prices fall below $2,500, a deeper correction may occur.

【Technical Analysis】

Gold's recent technical outlook suggests a potential retest of recent lows at $2,536 per ounce. A further drop could target the September low of $2,471. Resistance is seen around the 55-day moving average at $2,638. A break above could aim for the October high of $2,790.

【Market Sentiment and Economic Background】

The decline in gold prices is driven by a stronger dollar and reduced expectations of Fed rate cuts. Fed Chairman Jerome Powell's hawkish remarks suggest no rush to cut rates, dampening gold's allure. Additionally, Trump's potential tariff plans could stimulate inflation, affecting the rate cut outlook. U.S. Treasury yields remain high, increasing the opportunity cost of holding gold.

【Analyst Opinions】

Analysts note that the recent drop reflects market expectations of tighter U.S. monetary policy under Trump's leadership. The risk of geopolitical tensions subsiding and a strong dollar further pressure gold. However, long-term outlook remains bullish due to ongoing central bank demand and potential economic uncertainties associated with Trump's term. Market participants will watch upcoming U.S. economic data and Fed speeches for further cues on gold's direction.