Gold Daily | Spot Gold Falls Over $75 Amid Hawkish Fed Stance and Global Economic Uncertainties

【Latest Gold Price and Recent Trends】

On Friday, spot gold plummeted by over $75, closing at $3038.34 per ounce, a 2.44% drop. This decline was driven by Federal Reserve Chair Jerome Powell's hawkish stance on tariffs and inflation, which diminished hopes for a rate cut and led to significant sell-offs.

【Technical Analysis】

Analysts suggest that if gold prices fall below the $3000/oz threshold, sellers may target the 50-day SMA at $2937/oz and then the $2900/oz level. Should a rebound occur, buyers need to reclaim $3100/oz to regain control.

【Market Sentiment and Economic Background】

Market sentiment is pressured by global economic uncertainties, including the U.S.-China trade war, which resulted in China's retaliatory tariffs on U.S. imports. The announcement sparked a global market decline and liquidity crisis, leading investors to liquidate gold positions. Strong U.S. non-farm payroll data also dampened gold prices by supporting a delay in Fed rate cuts, as higher employment figures point to a stronger economy.

【Analyst Opinions】

Despite short-term pressures, analysts like Suki Cooper from Standard Chartered maintain a bullish outlook, expecting gold prices to reach new highs in the second quarter. The long-term demand for gold as a safe haven remains strong, given ongoing geopolitical tensions and economic instability. Adrian Ash from BullionVault suggests that the current economic backdrop is ideal for gold price increases, driven by trade uncertainties and a potential Fed rate cut cycle.