Gold Daily | Gold Price Rises on Weaker Dollar Amid Bearish Technical Signals and Market Optimism

【Latest Gold Price and Recent Trends】

Gold price is currently at approximately $3,343.04 per ounce, showing a modest increase of 0.3% from the previous day. Despite a weekly decline of 1.5%, the price rise is supported by a weaker dollar and buying interest after the recent dip.

【Technical Analysis】

Recent analysis on gold indicates a bearish trend as prices are below the 200-period SMA on the 4-hour chart, which is a critical signal for sellers. Gold's movement is limited near the 100-hour SMA around $3,355, with potential resistance at $3,375 and $3,400. On the downside, strong support is seen around $3,330, which may cap short-term losses. A decisive break below $3,300 would shift sentiment to bearish, opening the path to $3,272-$3,270.

【Market Sentiment and Economic Background】

The U.S. Producer Price Index (PPI) for July surged beyond expectations, causing a shift in market expectations regarding the Fed's monetary policy. Anticipations of aggressive rate cuts have diminished, contributing to dollar rebound and pressure on gold. However, FedWatch indicates potential rate cuts by the end of the year, which keeps dollar bulls defensive and supports gold demand. Global optimism driven by U.S.-Russia relations and trade war de-escalation may limit gold's safe-haven appeal.

【Analyst Opinions】

Analysts suggest that recent gold price corrections are now attracting buyers who previously missed opportunities. Factors such as geopolitical developments, including U.S.-Russia talks and the extended U.S.-China tariff truce, are influencing investor sentiment. UBS analyst Giovanni Staunovo indicates that gold's price dip may be a strategic entry point for investors. Meanwhile, Trump's belief in Putin's readiness to end the Ukraine war may further bolster market optimism.