Gold Daily | Strong Dollar Pressures Gold Amid Fed Independence Concerns and Technical Bullish Signals

【Latest Gold Price and Recent Trends】

Gold prices fell on Wednesday, pressured by a stronger dollar. However, concerns about the Federal Reserve's independence, following President Trump's threat to dismiss Fed Governor Lisa Cook, provided some support. Spot gold dropped 0.5% to $3,376.99, after hitting a two-week high of $3,393.95.

【Technical Analysis】

Gold maintains bullish potential as long as the 14-day RSI stays above 50. The indicator is currently around 55.50. The 21-day SMA recently crossed above the 50-day SMA, forming a "golden cross". Resistance lies near $3,400, with further resistance at $3,440. Sellers need to break below the $3,350 support area to regain control. The 100-day SMA at $3,328 is a critical support level.

【Market Sentiment and Economic Background】

Concerns about Fed's independence and Trump's tariff threats could mitigate gold's decline. The dollar's rise, limited by these concerns, puts pressure on gold. Markets focus on the upcoming PCE price index, with expectations of a Fed rate cut in September. Lower rates typically benefit non-yielding assets like gold.

【Analyst Opinions】

OANDA's Kelvin Wong indicates short-term speculators are profit-taking, but gold is supported by the Fed's dovish stance. The potential rate cut in September, predicted by CME's FedWatch Tool, adds to gold's appeal. Valeria Bednarik sees gold in a neutral-to-bullish state, buoyed by recent technical moves and ongoing buyer interest. Trump's actions have weakened the dollar, further favoring gold.