Gold Daily | Spot Gold Sees Mild Decline Amid Fed Rate Cut Expectations and Dollar Weakness

【Latest Gold Price and Recent Trends】

The price of spot gold is around $2710 per ounce, showing a mild decrease after hitting a five-week high, with a 1% weekly gain. The market anticipates Fed rate cuts due to weak U.S. inflation data.

【Technical Analysis】

Gold is trading near $2710, struggling to regain above the pivot point of $2723. A double top near $2723 reinforces strong resistance, while immediate support is at $2689.72, with deeper support at $2658.80. Key resistance levels are $2749.20 and $2771.37. Analysts note a potential further rise to $2770 if the price breaks through $2720.

【Market Sentiment and Economic Background】

The expectation of Fed rate cuts is supported by weak core inflation data and strong retail sales, indicating robust consumer demand. Fed Governor Waller suggested potential rate cuts, while traders expect a 41 basis point cut this year, up from 37 basis points. The dollar index is set to decline by 0.5% this week, breaking a six-week rising streak. Broader geopolitical and economic uncertainties continue to underpin gold's role as a risk diversifier.

【Analyst Opinions】

Ajay Kedia from Kedia Commodities suggests that gold prices are supported by a weaker dollar amid heightened rate cut expectations. ANZ Bank analysts believe gold will remain sensitive to interest rates and the dollar in an uncertain macroeconomic and geopolitical landscape, predicting volatility to continue through 2025. Meanwhile, Kieran Williams from InTouch Capital Markets notes the possibility of a stronger dollar due to evolving U.S. policies and economic strength, focusing on Trump's upcoming policies which may fuel inflation. Michael Langford from Scorpion Minerals indicates that gold reacts to short-term volatility due to incoming government policies and uncertainties.