Gold Begins to Recover; Geopolitical Risks Re-emerge as a Catalyst

Gold (XAU/USD) price movements today remain driven by the tug-of-war between a weakening US dollar and expectations regarding Federal Reserve monetary policy. After facing pressure following the Fed's 25-basis-point rate hike—bringing the target range to 3.75%–4.00%—gold has begun to find support from falling oil prices and easing energy-related inflationary pressures. The Dollar Index's retreat from previous highs has made gold more attractive to investors, given that the precious metal is priced in US dollars.

However, the scope for gold to strengthen remains limited as the market closely monitors the possibility of further Fed rate hikes this year. Projections from FOMC officials indicate that the door remains open for one additional hike, while elevated US Treasury yields continue to act as a headwind for non-yielding assets like gold. Meanwhile, geopolitical risks in the Middle East—including tensions around the Strait of Hormuz and the conflict involving Iran—continue to support gold's status as a safe-haven asset. Today, investors will focus on the dollar's trajectory, US bond yield movements, and geopolitical developments to gauge gold's next momentum shift. (mrv)

Gold price at the time of this analysis: $4,352

- Buy if the price moves to $4,357

- Sell if the price moves to $4,347

Resistance 2: $4,376

Resistance 1: $4,362

Support 1: $4,336

Support 2: $4,324

Note: This article is analytical in nature and does not constitute definitive advice. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.

Source: Newsmaker.id