Article by: ETO Markets
Gold prices retreated from their recent all-time peak during the Asian session as fresh sellers and profit-taking actions amid a historic run weighed on sentiment, while the US Dollar strengthened for a third straight day and neared its weekly high, exerting further pressure on the commodity. Meanwhile, expectations that the Federal Reserve might resume its rate-cutting cycle—anticipating two 25 basis points cuts by year’s end amid a downgraded growth outlook and concerns over aggressive trade policies—could help stabilize the gold price despite the strengthening dollar. Adding to market volatility, geopolitical tensions remain high as threats of reciprocal tariffs by US President Trump loom, conflicts in the Middle East intensify with Israel resuming heavy strikes on Gaza, and ongoing escalations in the Russia-Ukraine conflict continue to underscore global economic uncertainty, ultimately reinforcing gold’s status as a safe-haven asset.
From a technical perspective, the recent two-day corrective slide appears to be largely driven by profit-taking amid overbought conditions on the daily chart, without sufficient follow-through selling to confirm a near-term top. This suggests that a dip below the $…-… area might offer a buying opportunity, with the $… psychological mark acting as a temporary floor. Should this level hold, any break below it could trigger technical selling, potentially pushing the price first to the $…-… intermediate support, then further down towards the $… area, and possibly extending the decline to the $… support before reaching the $… mark and testing last week’s swing low around $…. Conversely, the $…-… zone, representing the recent all-time peak, remains a significant hurdle, and sustained strength beyond this level would likely prompt bullish traders to extend the well-established three-month uptrend.
