Gold Daily | Spot Gold Rises 0.3% Amid Inflation Concerns and Resistance Levels at $3,355 Per Ounce

【Latest Gold Price and Recent Trends】

Gold prices have seen a slight uptick, with spot gold rising 0.3% to $3,345.21 per ounce, despite a weekly decline of 1.5%. The market is reacting to higher-than-expected US inflation data, which has tempered expectations for a significant Fed rate cut.

【Technical Analysis】

Spot gold prices have recently rebounded from lows, finding support near the two-week low of $3,330 per ounce, and currently hover around $3,343 per ounce. Technical indicators in the hourly and daily charts suggest a bearish tendency, indicating that any further upward movement may face resistance at the 100-hour SMA around $3,355 per ounce. A sustained move above this level could trigger a short-covering rally, pushing prices past $3,375 and potentially challenging the $3,400 mark. Meanwhile, if selling persists, a breach below $3,300 could lead to further declines toward the $3,272-$3,270 range, marking the lower boundary of a three-month trading zone.

【Market Sentiment and Economic Background】

Recent US inflation data has surprised on the upside, with the Producer Price Index (PPI) for July climbing sharply, leading to reduced expectations for a significant rate cut by the Federal Reserve. This has pressured gold prices due to the higher yields in other assets. Despite this, some analysts believe geopolitical uncertainties, such as the Trump-Putin meeting, could still provide support for gold as a safe haven asset. Consumer sentiment data shows mixed signals, reflecting cautious market sentiment amid inflation concerns.

【Analyst Opinions】

Analysts are cautious about immediate gold price recovery, emphasizing the need for strong follow-up buying before expecting further increases. Some predict that if geopolitical tensions ease, as suggested by the US-Russia meeting, safe-haven demand could diminish, potentially impacting gold prices. There's also speculation that gold's correction could attract new investors looking to enter at lower price points. The geopolitical and economic calendar remains crucial, with upcoming Fed minutes and global central bank meetings likely offering new insights into interest rate paths and dollar movements, influencing gold's short-term trajectory.