Gold Daily | Gold Slips After Rally as Fed Rate Cut Speculation Grows Amid Geopolitical Tensions

【Latest Gold Price and Recent Trends】

Gold prices have declined slightly after a four-day rally, trading near $2,700 per ounce, affected by U.S. consumer price data aligning with expectations and increased speculation on a Federal Reserve rate cut next week. Lower borrowing costs typically support gold, though the future monetary policy trajectory remains uncertain with global political factors at play.

【Technical Analysis】

Gold has struggled to maintain its bullish momentum above $2,700, with technical indicators highlighting buyers' hesitation. Future movements may depend on breaking key resistance levels at $2,720 and $2,790. Meanwhile, support is seen around $2,675, with potential further support at $2,600 if selling pressure prevails.

【Market Sentiment and Economic Background】

Gold is poised for significant annual gains, the largest since 1979, driven by global central bank purchases and safe-haven demand amid geopolitical tensions. The market is attentive to the Fed's upcoming policy meeting, with expectations of a 25 basis point rate cut. The Fed's stance on future economic conditions, particularly given potential inflationary pressures from the Trump administration's tariff plans, will be crucial.

【Analyst Opinions】

Egon von Greyerz asserts that gold is poised for exponential growth due to a severe shortage in central bank reserves. He argues that Eastern and Southern central banks' increased gold holdings indicate a potential global shift from dollar reserves to gold. The limited supply from mining exacerbates the demand-supply imbalance, suggesting higher prices are the only resolution. Gold's role as a wealth preserver and growth asset is emphasized amid geopolitical instability and economic uncertainties, with expectations of continued upward price trends supported by monetary policies and global demand shifts.