Gold Daily | Gold Prices Recover Above $2600 but Remain Down for Week Amid Fed's Hawkish Stance

【Latest Gold Price and Recent Trends】

Gold prices have slightly risen above $2600, indicating recovery after a perceived overreaction to the Federal Reserve's hawkish stance. However, gold remains down 2% for the week as market adapts to potential slower rate cuts by the Fed.

【Technical Analysis】

Gold has found support around $2583.79 on the 4-hour chart, but remains below the pivot point at $2616.62. Resistance is noted at $2651.28, with RSI at 36 signaling oversold conditions, suggesting potential rebound.

【Market Sentiment and Economic Background】

The Fed's recent rate cut was accompanied by cautious economic forecasts, resulting in a stronger dollar and increased commodity prices for foreign buyers. U.S. economic data exceeds expectations, bolstering the Fed’s hawkish outlook and placing downward pressure on gold. Rising U.S. Treasury yields, surpassing 4.47%, limit gold's recovery.

【Analyst Opinions】

Analysts express mixed views. While some see the short-term gold drop as a buying opportunity amid looming debt issues and government shutdown risks, others point to strong economic data and inflation risks that limit aggressive Fed easing, traditionally unfavorable for non-yielding gold. Analysts are watching upcoming U.S. PCE data for further insights into economic outlook and its impact on gold.