Gold Daily | Bearish Trend in Gold as Strong Dollar and Trade Optimism Drive Prices Below Key Support

【Latest Gold Price and Recent Trends】

Gold prices are experiencing a bearish trend, currently around $3229, with a significant daily drop of nearly $70. The current market scenario favors sellers, driven by optimistic trade headlines and a stronger dollar.

【Technical Analysis】

Gold is under pressure with a bearish trend. It has broken below the $3246 key support, indicating a shift to a short-term bearish trend. The 50-day EMA at $3299 is pressuring prices, while the 200-day EMA at $3173 provides long-term support. Prices are below the downtrend line; bulls need to reclaim $3246 to avoid risks of further decline towards $3167 or even $3104. Current conditions favor sellers unless the resistance becomes support.

【Market Sentiment and Economic Background】

Despite upbeat trade prospects and a rising dollar causing short-term pressure on gold and silver, market sentiment remains cautiously optimistic due to dovish Fed expectations and lingering geopolitical concerns. American economic indicators show potential weaknesses, with private sector employment growth sharply slowing and GDP unexpectedly contracting. These factors fuel recession concerns and bolster expectations of monetary easing. The Fed may cut interest rates soon, possibly by 100 basis points by year-end. Geopolitical tensions, like Russia’s military activities in Eastern Europe, maintain some safe-haven interest in gold. Investors are focusing on upcoming U.S. non-farm payroll data and ISM manufacturing figures for further market direction.

【Analyst Opinions】

Analysts suggest maintaining caution and observing gold’s behavior near $3230 in upcoming sessions, as it remains under pressure. A breach of $3230 could open the door for further decline to $3150. If buyers defend $3230, resistance at $3383 may be tested. A sustained break above $3328 is crucial for recovery. Longer-term outlooks include potential recoveries aiming for $3400 and $3500 if immediate resistances are surpassed.