Gold Daily | Spot Gold Nears Historic Highs Amid Inflation, Rate Cut Anticipation, and Bullish Trends

【Latest Gold Price and Recent Trends】

Gold prices have risen significantly, nearing historical highs. As of now, spot gold is up 0.81% to $3,444.59 per ounce, potentially marking its best monthly performance since April. Persistent U.S. inflation and strong consumer spending are key drivers, with a 25 basis point Fed rate cut in September highly anticipated.

【Technical Analysis】

Gold maintains a short-term optimistic outlook with the 21-day moving average crossing above the 50-day moving average, confirming a bullish crossover. The 14-day RSI is around 60, indicating buying strength. Resistance levels are at the previous high of $3,423 and then around $3,440, with a higher target at $3,453. Support is at $3,385, moving down to the 21-day MA at $3,366 and further to the 50-day MA at $3,349.

【Market Sentiment and Economic Background】

Gold benefits from concerns over Fed independence and geopolitical uncertainties, serving as a safe-haven asset amidst political and economic turbulence. The dollar's 2% decline and anticipated rate cuts support gold’s bullish sentiment. A focus is on the core PCE price index, the Fed's preferred inflation measure, expected to influence future monetary policy. If data underperform, it could boost rate cut bets, supporting gold prices.

【Analyst Opinions】

Analysts express optimism about gold amid expectations of central banks increasing gold reserves. Concerns over the Fed's independence add safe-haven appeal. Analysts suggest that unless inflation data exceeds expectations, gold prices could maintain above the $3,400 level. If expectations for a Fed rate cut diminish, gold might dip below $3,400.