Gold Daily | Spot Gold Rises 0.5% on Dollar Retreat, Eyes Key Resistance Levels Amid Trade Tensions

【Latest Gold Price and Recent Trends】

International gold prices have recently rebounded, supported by the retreat of the US dollar and treasury yields. Spot gold is up 0.5%, trading at $3,339 per ounce, as investors digest recent US consumer price data while awaiting clarity on US trade policies.

【Technical Analysis】

Gold prices are currently supported by the 50-day moving average at $3,323 per ounce. The 14-day relative strength index (RSI) is slightly above midline at 50.50, suggesting a potential continuation of bullish control. A breakthrough above the 21-day moving average resistance at $3,335 could lead to testing higher levels, such as the 23.6% Fibonacci retracement at $3,377 and the psychological $3,400 mark. Conversely, if gold falls back below the 21-day SMA, it may retest the 50-day SMA support. Further support levels are at the 38.2% Fibonacci retracement $3,297 and the July low of $3,283.

【Market Sentiment and Economic Background】

The market is focused on upcoming US Producer Price Index (PPI) data for further clues on inflation trends. The latest consumer price index (CPI) showed a rise of 0.3% month-on-month in June, with a yearly inflation rate of 2.7%, in line with expectations. This data suggests that tariffs are beginning to impact inflation and may influence the Federal Reserve to maintain current interest rates longer. Trade tensions continue to influence market sentiment, with President Trump's recent announcements on tariffs intensifying concerns over global trade conflicts.

【Analyst Opinions】

Analysts remain optimistic about gold's prospects despite recent volatility. Wall Street firms like Morgan Stanley maintain a bullish stance, raising their gold price targets based on expectations of further dollar weakening and central bank purchases. Geopolitical uncertainties and trade policy developments are viewed as supportive factors for gold as a preferred hedge against policy risks.