GOLD tests bearish commitments near $3,350 amid geopolitics, Fed concerns
Gold rebounds toward $3,350 after hitting 11-day lows despite an improved risk sentiment.
US Dollar hangs near two-week troughs as focus shifts to US-Ukraine meeting and Fed events.
Gold buyers face bearish pressures yet again; the $3,350 area appears a tough nut to crack.
Gold is making another run to find acceptance above the key $3,350 supply zone early Monday, after having hit a fresh 11-day low near $3,325 amid looming geopolitical risks.
Geopolitical uncertainty continues to play a pivotal role in driving the haven demand for the traditional store of value, Gold, at the start of a busy week on Monday.
The much-awaited weekend meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska concluded without securing a Ukraine peace deal.Therefore, all eyes are now turning to a meeting between Trump and his Ukrainian counterpart Volodymyr Zelenskiy on Monday, with a rapid peace deal in sight.
Despite the looming meeting, markets appear to be in an upbeat mood, capping the further upside in the safe-haven Gold.
Hopes that Trump may lift sanctions on Russia and invest instead, alongside dovish US Federal Reserve (Fed) expectations, keep the broader market sentiment buoyed.
However, risk sentiment could sour if the US-Ukraine talks go south as in the past, likely further boosting Gold’s safe-haven appeal.
Meanwhile, Gold could also face fresh downside risks if the US Dollar (USD) sees a short-covering rally as traders might resort to profit-taking and repositioning ahead of the Minutes of the July Fed meeting and the annual Kansas City Fed’s Jackson Hole Economic Policy Symposium, which will take place Aug. 21-23.
Fed Chairman Jerome Powell is due to speak on Friday at the event, and his speech will be closely scrutinized for clarity on the scope and timing of interest rate cuts beyond the September policy meeting.
Daily technical analysis
At the time of writing. the daily chart shows a lack of clear direction for Gold, with a mild bias leaning toward sellers as the 14-day RSI flirts with the 49 level.
Acceptance above the $3,350 confluence zone of the 21-day SMA and 50-day SMA is critical to resuming the early August recovery.
The next bullish targets are seen at the previous week’s high of $3,375 and the $3,400 round level.
On the flip side, the 100-day SMA at $3,307 could offer immediate support if the intraday low of $3,324 gives way.
Deeper declines will challenge the July 31 low of $3,274.
GOLD tests bearish commitments near $3,350 amid geopolitics, Fed concerns
Gold is making another run to find acceptance above the key $3,350 supply zone early Monday, after having hit a fresh 11-day low near $3,325 amid looming geopolitical risks.
Geopolitical uncertainty continues to play a pivotal role in driving the haven demand for the traditional store of value, Gold, at the start of a busy week on Monday.
The much-awaited weekend meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska concluded without securing a Ukraine peace deal.Therefore, all eyes are now turning to a meeting between Trump and his Ukrainian counterpart Volodymyr Zelenskiy on Monday, with a rapid peace deal in sight.
Despite the looming meeting, markets appear to be in an upbeat mood, capping the further upside in the safe-haven Gold.
Hopes that Trump may lift sanctions on Russia and invest instead, alongside dovish US Federal Reserve (Fed) expectations, keep the broader market sentiment buoyed.
However, risk sentiment could sour if the US-Ukraine talks go south as in the past, likely further boosting Gold’s safe-haven appeal.
Meanwhile, Gold could also face fresh downside risks if the US Dollar (USD) sees a short-covering rally as traders might resort to profit-taking and repositioning ahead of the Minutes of the July Fed meeting and the annual Kansas City Fed’s Jackson Hole Economic Policy Symposium, which will take place Aug. 21-23.
Fed Chairman Jerome Powell is due to speak on Friday at the event, and his speech will be closely scrutinized for clarity on the scope and timing of interest rate cuts beyond the September policy meeting.
Daily technical analysis
At the time of writing. the daily chart shows a lack of clear direction for Gold, with a mild bias leaning toward sellers as the 14-day RSI flirts with the 49 level.
Acceptance above the $3,350 confluence zone of the 21-day SMA and 50-day SMA is critical to resuming the early August recovery.
The next bullish targets are seen at the previous week’s high of $3,375 and the $3,400 round level.
On the flip side, the 100-day SMA at $3,307 could offer immediate support if the intraday low of $3,324 gives way.
Deeper declines will challenge the July 31 low of $3,274.
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