Gold Daily | Spot Gold Near $3,659/oz Amid Dollar Strength and Fed Rate Cut; Long-Term Bullish Outlook

【Latest Gold Price and Recent Trends】

Spot gold is trending near $3,659/oz, rebounding by approximately $15 on the day. The price recently saw a correction after reaching a historic high of $3,707.40/oz, driven by profit-taking and a stronger dollar.

【Technical Analysis】

Gold's daily chart indicates a potential retest of the record high at $3,708/oz if buying pressure builds, with further targets at $3,750/oz. Conversely, should the correction deepen, gold might challenge the recent low of $3,627/oz and potentially test $3,600/oz. RSI suggests bullish momentum, though caution is advised on technical corrections. Short-term support is seen at $3,626.70/oz with resistance at $3,655.90/oz.

【Market Sentiment and Economic Background】

The Federal Reserve's recent 25 basis point rate cut, described as "risk management" rather than the start of a sustained easing cycle, has influenced gold's movement. The dollar's rebound, supported by solid U.S. employment and manufacturing data, is pressuring gold prices. Despite this, the broader economic landscape, characterized by global uncertainty and central banks diversifying reserves, continues to underpin long-term bullish sentiment for gold. The growing trend of dedollarization among BRICS nations also provides support.

【Analyst Opinions】

Analysts maintain a positive long-term outlook for gold, citing central bank purchases and economic uncertainties as key drivers. France's Société Générale has notably increased its gold allocation to 10% in its multi-asset portfolio, anticipating an average gold price of $3,825/oz in the remaining months of the year. Despite short-term pressures from a strong dollar, the overall sentiment is that gold remains an essential hedge against economic and geopolitical risks.