- The continued strength of the US dollar has increased selling pressure on gold XAU/USD, with losses extending to the lowest level in a month, reaching the support level of $2,000 per ounce and nearing a break below the psychological level of $2,000 per ounce.
- Recently, the gains of the US dollar have increased after the comments of a hawkish policymaker from the Federal Reserve, which limited the expectations of an imminent rate cut, leading to higher yields for the dollar and the Treasury.
Will gold prices fall in the coming days?
The US dollar index DXY hovered near its highest level in a month after the comments of Fed Chairman Christopher Waller that the central bank should not rush to cut interest rates until it is possible to maintain low inflation. Meanwhile, the yield on the benchmark 10-year Treasury notes also rose. According to analysts, the markets are skeptical about rate cuts, and whether the Fed can cut them sooner rather than later, which is putting pressure on gold prices. In the face of the strong dollar, it is taking some time for the cuts to take effect, so it is difficult for gold to maintain its rise. Yet, geopolitical risks will continue to provide a base for prices and keep them at the $2,000 level.
Gold Price Forecast and Analysis Today:
Despite the recent performance, we still prefer to buy gold from every falling level, as global geopolitical tensions are still increasing, and banks’ purchases of gold are reaching record levels. On the other hand, according to the performance on the daily chart below, bulls’ strong control over the price of gold will not return without returning to the vicinity of the resistance levels of 2055 and 2070 dollars per ounce again.
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