Gold Daily | Spot Gold Declines 0.4% Amid Stronger Dollar and Eased Tensions Over Fed Chair Powell

【Latest Gold Price and Recent Trends】

Gold prices have experienced a decline, with spot gold down 0.4% at $3,334.19 due to a stronger dollar and eased market tensions following President Trump's remarks on Federal Reserve Chair Powell. This downturn contrasts with recent fluctuations fueled by Trump's potential actions regarding Powell, which had initially driven gold higher.

【Technical Analysis】

Gold has retreated to key trend lines across various time frames. On the daily chart, it nears the main uptrend support, a potential buy zone aiming for a rebound to a $3438 resistance. Sellers might focus on a trend line break, targeting a $3120 level. On the 4-hour chart, a secondary trend line formed by recent lows could see gold dip before rebounding. Similarly, the 1-hour chart suggests buy opportunities near the trend line while sellers target its breach.

【Market Sentiment and Economic Background】

Market sentiment is influenced by easing fears about Powell's job security, coupled with the dollar's resurgence, which makes dollar-denominated gold pricier. Lower-than-expected U.S. core CPI and PPI data indicate market focus might be shifting, with expectations for continued gold upward trends as the Fed eases policy. However, hawkish rate expectations could spur short-term corrections. Retail sales data, known as "scary data" for its impact, is expected to influence gold and dollar movements.

【Analyst Opinions】

Analysts note that geopolitical risks, such as Middle Eastern tensions and EU-US trade disputes, sustain gold's safe-haven appeal. The dollar's weakness enhances gold's attractiveness, while mixed Fed signals continue to stir market volatility. Senior analysts suggest recent events, including potential Fed chair dismissal rumors, initially supported gold but later led to a sharp correction. Geopolitical and trade uncertainties remain key factors driving gold prices.