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Gold Price Forecast: $2,032 Resistance Looms Amid Fed Hike Fears

Gold’s price marginally advances in today’s Asian trading, yet it remains shy of the crucial 50-day SMA near $2,032—a resistance that echoes last week’s peak. Geopolitical strife bolsters the metal’s allure as a haven, with the US dollar’s softening providing further buoyancy.

Gold Price Chart - Source: TradingView

Despite these tailwinds, gold’s rally is tempered by market anticipation of enduring high US interest rates, a sentiment solidified by the latest FOMC minutes.

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These revelations, coupled with a tepid US bond auction, have bolstered yields, potentially restraining bullish gold bets and suggesting prudence for trend continuation.

Middle East Tensions Support Safe Havens

Increasing Middle East tensions, exemplified by recent maritime threats, amplify gold’s status as a sanctuary asset. Escalating hostilities in the region lend gravity to the commodity’s value amidst global market unease.

USD Softness Versus Rate Hike Expectations

While the dollar hovers at a multi-week low—typically a boon for gold—Fed meeting insights have capped significant gains. These minutes have pushed rate cut expectations further out, elevating Treasury yields and tempering gold’s ascent.

Looking Forward: Economic Data and Fed Speeches in Focus

Investors now shift focus to upcoming US economic reports and Fed Governor Philip Jefferson’s remarks, seeking catalysts that could shape gold’s near-term trajectory.

Economic Calendar Highlights:

  • Unemployment Claims
  • Flash Manufacturing and Services PMI
  • Existing Home Sales Data
These economic events, alongside central bank communication, will likely influence gold’s price movements as the market digests policy implications amidst a complex backdrop of geopolitical and economic developments.

Gold Price Forecast: Technical Analysis

Gold inches up, trading at $2,028.165 with a subtle gain of 0.11%. The metal’s current stance above the pivot point of $2,023.36 suggests a bullish undertone in the 4-hour chart frame.

Resistance levels lie at $2,038.689 and $2,053.285, with a firmer cap at $2,065.708. Support comes into play at $2,013.200, descending to $1,999.912 and $1,988.187.

Gold Price Chart
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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