Gold Daily | Gold Prices Hover at $2,495 Amid Strong Dollar, Fed Rate Cut Speculations, and Geopolitical Tensions

【Latest Gold Price and Recent Trends】

Gold prices are hovering around $2,495 per ounce, showing a sluggish trend after a sharp drop of nearly $20 last Friday. The strong US dollar is a key factor, with rising treasury yields limiting gold's upside.

【Technical Analysis】

Gold is facing resistance at $2,500 and support around $2,470-$2,480. Breakouts above $2,500 may lead to $2,511, while dips below $2,470 could test $2,443. Short-term charts indicate potential bullish consolidation as indicators remain positive despite losing traction.

【Market Sentiment and Economic Background】

Market focus is on this week's US inflation data, crucial for Fed's interest rate decisions. Analysts predict a 75% chance of a 25 basis points cut and 25% chance of a 50 basis points cut. August CPI data will be essential in shaping these expectations. Despite mixed non-farm payrolls data, rising US treasury yields and a stronger dollar are capping gold's gains. Middle Eastern geopolitical tensions continue to support gold's safe-haven demand. China's PBOC held its gold reserves stable in August, reflecting no new purchases and aligning with ongoing economic reforms.

【Analyst Opinions】

Barclays and Bank of America forecast the CPI annual rate at 2.5%-2.6%, with core inflation at 3.2%. A lower CPI may bolster hopes of a larger rate cut, potentially pushing gold prices to historic highs. In the short-term, gold is expected to trade around $2,486.75, testing the key resistance at $2,500. Analysts like Tim Waterer emphasize the importance of support at $2,470-$2,480, suggesting a focus on this range to gauge selling pressure. The general sentiment is cautious, with key events such as the US CPI report being pivotal for gold's next movements.