Gold Daily | Gold Surges Above 3300 USD Amid Central Bank Demand and Weak Dollar

【Latest Gold Price and Recent Trends】

Gold prices have surged above 3300 USD, recovering from last week's decline. With a rise of over 70 USD in a day, the trend remains bullish, aided by central bank demand for gold driving structural price increases over silver.

【Technical Analysis】

Gold has strongly rebounded, breaking past 100-hour and 200-hour moving averages at 3270 USD and 3294 USD. The 50% Fibonacci retracement level has provided support for a robust rally. Short-term outlook turns bullish as gold seeks a steady break above 3300 USD. Analysts note that maintaining above the 21-day moving average at 3242 USD is crucial for continuing upward movement. Failure to do so may lead to a downturn towards 3150 USD.

【Market Sentiment and Economic Background】

The weaker dollar has supported gold's rise, as investors await US-China trade progress and the upcoming Federal Reserve policy meeting. The dollar index's decline makes gold more attractive. Market focus is on Fed policy signals amid expectations of rate cuts starting July, following stronger-than-expected US job growth in April. Gold's appeal as a hedge against global uncertainty remains strong.

【Analyst Opinions】

Goldman Sachs projects that gold will continue outperforming silver due to strong central bank demand, high recession risks, and oversupply in China's solar production. The firm anticipates gold reaching 3880 USD by year-end, driven by increased ETF inflows if a recession occurs. Analysts emphasize that despite recent adjustments, gold prices are poised for gains, contingent on Fed policy developments.