Gold Daily | Gold Rises Amid Dollar Drop and Geopolitical Tensions but Faces Post-Election Sell-off Risks

【Latest Gold Price and Recent Trends】

Gold prices have risen to $2,652.72 per ounce, driven by a declining dollar and geopolitical tensions, but face the largest monthly drop since September 2023 due to post-election sell-offs following Donald Trump’s victory.

【Technical Analysis】

Gold is rebounding near the critical support area of $2,600, aligning with a main trend line. If support breaks, bears may target $2,400. On the 4-hour chart, gold is under a secondary upward trend line, where a bounce may lead bulls to new highs. The 1-hour chart shows a secondary support zone at $2,656, where buyers might push prices higher, while bears eye a support break for a pullback.

【Market Sentiment and Economic Background】

Geopolitical tensions and Fed's rate cut support gold as Trump's tariff hikes could trigger inflation, causing the Fed to be cautious on further cuts. Global uncertainty continues to drive gold as a haven asset. Meanwhile, the market is pricing a 70% chance of a Fed rate cut in December, up from 50% a week ago, boosted by recent US PCE data aligning with expectations.

【Analyst Opinions】

Analysts like Jim Wyckoff suggest uncertainty around Trump’s tariffs might benefit gold from a safe-haven perspective. Ole Hansen of Saxo Bank notes ongoing global uncertainties bolster demand for gold as a safe asset. However, analysts warn of volatility and suggest a cautious Fed approach to further rate cuts.