Gold Tries to Recover, But Dollar Remains Dominant
Gold is currently attempting to recover as dip-buying has begun to emerge after declining in recent sessions, especially as global uncertainty remains high. However, the "recovery" tends to be restrained due to the strong US dollar and the market's increasing sensitivity to geopolitical headlines and energy disruptions (oil prices have surged sharply), so more capital flows are "hiding" in the USD rather than fully investing in gold.
From a macro-fundamental perspective, the oil surge has made the market fearful of a rebound in inflation, which has led to rising yields and strengthening expectations that the Fed will hold interest rates longer—this is what usually puts a damper on gold (because gold doesn't provide a yield). So the scenario is: gold can rebound as long as risk-off persists, but for a longer rally, the market needs a signal that the dollar/yields are softening or the Fed is becoming more comfortable with inflation.
The gold price at the time of this analysis's release was at $5,128.
- Buy if the price moves below $5,135.
- Sell if the price moves below $5,120.
Resistance 2: $5,156.
Resistance 1: $5,141.
Support 1: $5,111.
Support 2: $5,096.
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions. (alg)
Source: Newsmaker.id
