On Tuesday, Gold price retreated from record highs near $2,532, as fears of a broader Middle East conflict eased. The US Dollar and Treasury bond yields paused their recovery, creating a tepid risk tone in the market.
The technical setup for Gold remains bullish, with buyers eyeing fresh lifetime highs. The focus now shifts to US housing and sentiment data, as geopolitical risks subside in the Middle East.
Gold Price Bides Time, as Record Highs Await
Gold price faced rejection near $2,530 in Asian trading on Tuesday, as concerns over a Middle East conflict eased. The US Dollar’s recovery stalled, despite strong US Durable Goods Orders data, reducing expectations of a 50 bps rate cut by the Fed in September.
Market sentiment remains positive for Gold, supported by increased Fed rate-cut bets and geopolitical risks. Additionally, improving physical Gold demand from India and China could limit downside pressure on Gold price.
Looking ahead, traders will monitor US CB Consumer Confidence and housing data, along with speeches from Fed policymakers for fresh policy hints.
Gold Price Technical Analysis: Daily Chart
The short-term technical outlook for Gold price remains bullish, with strong support at $2,468. The 21-day Simple Moving Average (SMA) acts as a key support level, while the Relative Strength Index (RSI) remains above 50, indicating a bullish trend.
To the upside, Gold buyers aim to break the record high of $2,532 and target the $2,550 level. On the downside, support is seen at $2,500 and $2,485, with a breach of the latter potentially leading to a test of $2,468.
Gold FAQs
Gold has historically been a safe-haven asset, used as a store of value and hedge against inflation. Central banks hold significant Gold reserves to strengthen their currencies during turbulent times. The price of Gold is influenced by various factors, including geopolitical instability, interest rates, and the strength of the US Dollar.