Gold Daily | Gold Stabilizes on Central Bank Demand, Rate Cut Prospects Amid Economic Slowdown Concerns

【Latest Gold Price and Recent Trends】

Gold prices have stabilized around $3025, reflecting strong central bank demand and potential early rate cuts by the US Federal Reserve. However, gains are limited as some investors sell gold to cover losses in other trades.

【Technical Analysis】

Gold is holding steady above $3000 after hitting a one-month low earlier. Technical indicators suggest a 'buy on dips' strategy is viable as long as gold stays above the 50-day moving average of $2944. The Relative Strength Index remains above 50, maintaining a bullish trend. If prices close above the 21-day Simple Moving Average of $3029, further gains to $3100 and possibly a record high of $3168 could be expected. Conversely, failure to breach $3029 could see a retest of $3000, with supports at $2971 and $2944.

【Market Sentiment and Economic Background】

The market sentiment has been significantly impacted by President Trump's comprehensive tariff policies, leading to global stock market declines and increased recession expectations. The tariffs have raised fears of economic slowdown, although ongoing central bank purchases and ETF inflows support gold. The US Federal Reserve is anticipated to cut rates by 116 basis points this year, enhancing gold's appeal as a non-yielding asset.

【Analyst Opinions】

Gold remains a strong bullish argument despite recent adjustments, with Deutsche Bank raising year-end predictions to $3350. Analysts suggest that increased recession risks might prompt the Federal Reserve to cut rates, which would be favorable for gold. Robert Kiyosaki advises shifting investments from depreciating assets to gold, silver, and Bitcoin amid economic recession concerns. Meanwhile, geopolitical tensions and trade disputes are seen as potential catalysts for further gold price increases.