Gold price (XAU/USD) continues to decline for the fourth day in a row, facing pressure from various factors. The stability in equity markets and modest USD strength are contributing to the downward trend. Additionally, bets for a 50-bps Fed rate cut in September and geopolitical risks are expected to limit further losses in the precious metal.
Daily Digest Market Movers: Gold price is undermined by positive risk tone and rebounding US bond yields-led USD uptick
- The global sell-off in equity markets has eased, impacting the safe-haven Gold price negatively.
- US Treasury bond yields are rising, supporting the US Dollar and putting pressure on Gold.
- The US trade deficit decreased in June, but Fed rate cut expectations remain high.
- Geopolitical tensions in the Middle East are also influencing market sentiment.
- Market consolidation is expected until the next major fundamental catalyst emerges.
Technical Analysis: Gold price needs to find acceptance below the 50-day SMA pivotal support for bears to seize control
Technically, Gold price is testing the 50-day SMA support, with potential further support at lower levels. A break below key support levels could trigger more bearish movement. On the upside, resistance levels are identified for potential bullish momentum.
Gold FAQs
- Gold is a safe-haven asset widely used for investment during turbulent times.
- Central banks hold significant Gold reserves to support their currencies in times of crisis.
- Gold has inverse correlations with the US Dollar, US Treasuries, and risk assets.
- Price movements in Gold can be influenced by various factors, including geopolitical instability and interest rates.
Understanding the current factors affecting the Gold price can help individuals make informed decisions about their investments. Whether considering Gold as a safe-haven asset or analyzing technical indicators for trading opportunities, staying informed about market dynamics is crucial for financial success.