Gold Daily | Gold Prices Drop 3% on Strong Dollar and Eased Trade Tensions, Worst Since Nov 2024

【Latest Gold Price and Recent Trends】

Gold prices have recently dropped to around $3,221.19 per ounce, marking a significant weekly decline due to a strengthening dollar and easing trade war concerns that have reduced gold's appeal as a safe haven. This week, gold has fallen over 3%, potentially recording its worst performance since November 2024.

【Technical Analysis】

On the daily chart, gold prices have approached a major trendline, where buyers are entering, with risks set below the trendline. A bullish rebound is anticipated unless prices break below the trendline targeting $2,960. The 4-hour chart shows a strong rebound near the trendline, with buyers pushing prices towards the resistance level of $3,260. On the hourly chart, there is minor support around $3,200, where buyers might enter again, aiming to breach the $3,260 resistance.

【Market Sentiment and Economic Background】

Gold remains pressured as markets have dismissed stagflation concerns and recalibrated interest rate cut expectations, with the Federal Reserve's rate cut estimated at 58 basis points within the year, down from 120 basis points peak in April. The easing U.S.-China trade tensions and economic data showing weaker inflation and retail sales growth have further impacted gold prices. The dollar's recent strength has made gold more expensive for overseas buyers, undermining its demand.

【Analyst Opinions】

Ilya Spivak notes significant selling pressure on gold due to the market's relief over U.S.-China trade easing. Tim Waterer highlights gold's continued appeal despite price drops, given uncertain global growth and inflation outlooks. There's optimism that gold will maintain an upward trend, supported by factors such as ETF flows, official sector demand, and broader economic risks. However, the dollar's rebound and adjusted interest rate cut expectations present potential downward pressure on gold prices.