Gold Daily | Spot Gold Stable at Two-Week High as Weaker Dollar, Expected Rate Cuts Boost Outlook

【Latest Gold Price and Recent Trends】

Spot gold is stable around $3395, near a two-week high. The price increase is driven by a weaker dollar and anticipated US rate cuts. Investors await US inflation data, specifically the PCE price index, crucial for Fed policy direction.

【Technical Analysis】

Spot gold is encountering resistance near the $3400 mark. Analysts suggest a breakthrough is critical for sustaining the upward trend. Short-term support is seen at the 21-day moving average at $3359, while resistance is noted at $3405.80.

【Market Sentiment and Economic Background】

The market expects a 90% chance of a Fed rate cut in September, following dovish remarks by NY Fed President John Williams. The PCE price index and GDP data are pivotal for future rate decisions. Recent economic forecasts anticipate a 3.1% GDP growth revision, influencing gold's direction as lower dollar prospects increase gold's appeal.

【Analyst Opinions】

Analysts note increased buying interest, with technical indicators showing a bullish trend. The 21-day SMA crossing above the 50-day SMA underscores a positive outlook. Key support and resistance levels are identified, with $3380.45 as notable support and $3433.90 as resistance. The prevailing sentiment aligns with a long-term upward trend, despite potential short-term adjustments based on economic data revelations.