Gold Daily | Gold Prices Rise Above $3,320 Amid Weak Dollar and Heightened Geopolitical Tensions

【Latest Gold Price and Recent Trends】

Gold prices have risen to over $3,320 per ounce due to a weaker dollar and heightened geopolitical tensions. As spot gold increased by 0.65%, retaining the gains from the previous day, market concerns over US fiscal policy and geopolitical uncertainties continue to bolster gold's appeal.

【Technical Analysis】

Gold prices have broken through the recent consolidation range marked by 21-day and 50-day simple moving averages (SMA), showing strengthened buying interest as the 14-day RSI moves above the midline. Key support stands at $3,165, the 61.8% Fibonacci retracement of April's record surge. A daily close above the 21-day SMA at $3,289 could pave the way to test resistance at $3,387, followed by the $3,400 level. Conversely, if sellers regain control, initial support lies at the 50-day SMA around $3,185, with further downside potentially testing $3,165, and possibly falling to $3,100 if breached.

【Market Sentiment and Economic Background】

Gold prices are being supported by a weaker dollar, influenced by Moody's downgrade of US sovereign credit rating, which raises concerns over the US fiscal deficit. Political uncertainties, such as the potential conflict between Israel and Iran, further contribute to gold's appeal as a safe-haven asset. The geopolitical landscape, including stalled Russia-Ukraine peace talks and Middle Eastern tensions, remains a key driver for gold's strength. Additionally, the Federal Reserve's cautious stance amid economic uncertainties and the prospect of rate cuts by October further support gold prices.

【Analyst Opinions】

Analysts highlight fiscal concerns and geopolitical risks as significant factors driving gold prices. Giovanni Staunovo from UBS notes that the downgrade by Moody's has renewed market attention on US fiscal conditions, weakening the dollar and supporting gold's appeal. Independent traders like Tai Wong emphasize the lack of positive news in other metals like palladium, contrasting with gold's steady rise amidst geopolitical tensions. Additionally, De Casa from Swissquote indicates that gold is building a strong support base above $3,200, suggesting potential for further upward movement.