News Maker 23 - Analysis

Gold prices (XAU/USD) remained more stable in today’s trading session after coming under pressure following the Federal Reserve’s decision to raise interest rates by 25 basis points to the 3.75%-4.00% range. A softer US Dollar and declining oil prices have provided room for gold to recover, as markets continue to adjust expectations regarding the Federal Reserve’s next policy steps.

From a fundamental perspective, gold is still facing pressure from the Fed’s hawkish stance. The central bank’s latest projections showed that most policymakers still see the possibility of another rate hike this year. This outlook has kept US Treasury yields elevated and limited demand for gold, as the precious metal does not provide interest income. However, geopolitical risks in the Middle East, including tensions surrounding Iran and global energy routes, continue to support gold demand as a safe-haven asset.

From a technical perspective, gold remains in a consolidation phase after experiencing a sharp decline from previous highs. The US$4,250 area remains a key support level, as a break below this zone could open the way for further downside toward the US$4,200 region. Meanwhile, the US$4,300 level represents the initial resistance that needs to be reclaimed to restore short-term bullish momentum.

If gold manages to break and hold above the US$4,300 level, the recovery could extend toward the next resistance zone around US$4,350-US$4,400. However, renewed selling pressure driven by a stronger US Dollar and higher Treasury yields could push gold prices back toward lower support areas.

Overall, gold’s direction today will depend heavily on movements in the US Dollar, Treasury yields, and market expectations surrounding the Federal Reserve’s monetary policy. A weaker dollar combined with rising geopolitical uncertainty could provide additional support for gold, while expectations of higher interest rates for longer remain the main risk factor for the precious metal.(mrv)

Source : Newsmaker.id