Gold Daily | Gold Rises 0.2% Amid Dollar Weakness, Eyes Trendline for Potential Rebound

【Latest Gold Price and Recent Trends】

On Wednesday, gold slightly rose, supported by a decline in the dollar and U.S. Treasury yields. Spot gold increased by 0.2% to $3,330, having hit a two-week low the previous day. The easing tensions between Israel and Iran have reduced geopolitical risk premiums, impacting gold negatively.

【Technical Analysis】

Gold prices continue to decline toward a key trendline. Buyers may find a better risk-reward ratio near the trendline for a potential rebound. Sellers hope for a break below this line to target $3,120. The price finds support around $3,294. If breached, it may head toward $3,250, with $3,232 acting as further support. To renew bullish momentum, gold needs to exceed the 21-day moving average of $3,352 and then target the 23.6% Fibonacci level at $3,377.

【Market Sentiment and Economic Background】

The easing of tensions between Israel and Iran and the Fed's hawkish tone have lessened gold's allure as a safe haven. Fed Chair Powell's comments on the need for more time before considering rate cuts have added to the uncertainty. Traders expect a possible rate cut by September.

【Analyst Opinions】

OANDA's Kelvin Wong suggests that further dollar weakness and focus on U.S. fiscal and tariff policies could be potential catalysts for gold prices. FXStreet analyst Dhwani Mehta highlights the challenge of maintaining the 50-day SMA as a crucial support. If gold fails to hold this, a technical downturn could ensue. Valencia from FXStreet notes the downtrend testing the 50-day SMA at $3,317. Gold must breach $3,400 to regain bullish strength.