Gold Daily | Spot Gold Dips Amid Strong Dollar, Awaiting Powell's Speech for Monetary Policy Clues

【Latest Gold Price and Recent Trends】

The international gold price slightly declined, influenced by a strong dollar, attempting to continue its previous downward trend. Investors are eagerly waiting for Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Symposium, which may offer new clues on future monetary policy. Spot gold is down 0.3% at $3329.19.

【Technical Analysis】

The daily chart reveals a bearish outlook for gold, with the 14-day Relative Strength Index (RSI) below 50 and a persistent "death cross" pattern. The 21-day simple moving average (SMA) has fallen below the 50-day SMA, confirming the negative signal. If bears can firmly break below the 100-day SMA at $3314, it could support a further downward trend. Targets include the July 31 low of $3274 and possibly the psychological level of $3250 if further declines occur. Conversely, bulls need to break strong resistance near $3350 to reverse short-term bearishness, with further targets at $3375 and $3400.

【Market Sentiment and Economic Background】

The dollar's rebound, driven by strong U.S. economic data such as housing sales and PMI indices, has reduced the appeal of gold for overseas buyers. Market expectations for a Federal Reserve rate cut next month have diminished, particularly after recent comments from Fed officials and strong economic indicators. Concerns over AI investments have led to persistent sell-offs in the U.S. stock market, bolstering the dollar's safe-haven appeal.

【Analyst Opinions】

Tim Waterer from KCM Trade mentions that gold faces resistance due to potential Russia-Ukraine peace agreements and dollar purchases. If Powell's speech leans dovish, the dollar might face pressure, potentially boosting gold. However, if Powell resists aggressive rate cut expectations, it may further support the dollar, pushing gold below $3300.