Gold Price Forecast: $3,360 Holds Firm on Fed Cut Buzz and Weak Dollar
Gold rose for the third day in a row as expectations of a September rate cut from the Fed and a softer dollar lifted the metal.
Quick overview
- Gold prices have increased for three consecutive days, driven by expectations of a September rate cut from the Fed and a weaker dollar.
- Current spot prices are around $3,357, with analysts suggesting that a rise above $3,400 could lead to further gains.
- Tame inflation data has reinforced rate cut expectations, making gold an attractive safe-haven asset amid easing Treasury yields.
- Technical indicators show mixed momentum, with key support at $3,345-$3,355 and resistance levels at $3,382 and $3,410.
Gold rose for the third day in a row as expectations of a September rate cut from the Fed and a softer dollar lifted the metal. Spot prices are near $3,357 and futures are close to recent highs. Analysts say a move above $3,400 could open up more upside.
Inflation Data Fuels Rate-Cut Bets
Tame July inflation numbers have cemented rate cut expectations. Headline CPI was flat, which supports lower rates. Easing Treasury yields and a weaker dollar are making gold a safe-haven asset. If data continues to slow, rate cuts will get more aggressive and gold could retest all-time highs.
Gold Key Levels and Market Watch
On the 4-hour chart, gold is consolidating in a rising wedge, testing the 50-SMA at $3,369 after bouncing off $3,337 support. Momentum indicators are mixed:
- RSI is 52.77, neutral and can go either way.
- MACD is bullish, indicating early upside.
- Support is $3,345-$3,355, with resistance at $3,382 and $3,410.
For traders, a pullback to wedge support with a bullish engulfing candle could be a long entry at $3,382, then $3,410 if momentum holds. A break below $3,337 could see a move to $3,314.
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