Gold Daily | Gold Stabilizes After AI-Driven Sell-Off; Eyes on Fed Meeting and Geopolitical Tensions

【Latest Gold Price and Recent Trends】

Gold prices steadied around $2,740 per ounce, with minor fluctuations following a market sell-off driven by concerns over AI technology. The recent sharp drop was instigated by China's DeepSeek AI model, leading to gold's worst daily performance in over a month.

【Technical Analysis】

After Monday's plunge, gold slightly rebounded, trading near $2,743 per ounce. The outlook is neutral, with key resistance at $2,755 and support at $2,731.50 per ounce. A breach of resistance could signal a bullish trend towards $2,790 per ounce, while a support break might lead to an adjustment towards $2,708.50.

【Market Sentiment and Economic Background】

The market reacted to AI advancements by DeepSeek, causing a wave of sell-offs in tech stocks, impacting gold as investors covered losses. Although the US dollar strengthened due to new tariff threats, concerns over AI valuations led to gold's downturn. Investors are also eyeing the Fed's policy meeting, where rates are expected to remain unchanged, while Trump's tariff policies might stir inflation expectations.

【Analyst Opinions】

Analysts suggest that the AI-driven liquidity concerns are a major factor in the gold sell-off. Some analysts see liquidity issues forcing investors to cash in their assets, impacting gold along with other risk assets. Meanwhile, gold demand remains strong due to geopolitical uncertainties and potential inflation under Trump's policies. Short-term, gold might test the $2,800 level if the Fed signals a dovish outlook.