Gold Daily | Gold Rebounds to $2,605 on Weaker Dollar Amid Fed's Hawkish Stance and Economic Uncertainty

【Latest Gold Price and Recent Trends】

Gold prices rebounded to $2,605 per ounce, recovering from earlier losses. The recent increase is supported by a weaker dollar and potential for interest rate cuts, despite the Fed's hawkish stance suggesting a rate cut slowdown.

【Technical Analysis】

Gold is finding support around $2,583.79. Despite the recent rebound, prices remain below the pivot level of $2,616.62, indicating mild bearish sentiment unless this level is breached. Immediate resistance is at $2,651.28, with potential gains to $2,690.98 if momentum strengthens. The RSI indicates oversold conditions, suggesting a rebound is possible, while the 50 EMA at $2,640.41 indicates ongoing downward pressure.

【Market Sentiment and Economic Background】

The Fed's hawkish outlook, supported by strong U.S. economic data including a 3.1% GDP growth and low unemployment claims, strengthens the dollar and raises Treasury yields, which limits gold's recovery potential. The anticipation of the PCE inflation data, a critical Fed inflation gauge, keeps markets on edge. Additionally, looming U.S. government shutdown risks enhance gold's appeal as a safe haven.

【Analyst Opinions】

Analysts suggest that the recent dip in gold prices presents a buying opportunity for long-term investors, given ongoing economic uncertainties and potential government shutdowns. However, the strong economic data and Fed's stance could keep upward pressure on yields and the dollar, challenging gold's price growth.