đź“Š Trend: Mixed
The price of gold (XAU/USD) is currently showing a mixed trend. Despite support from expectations of a potential interest rate cut and ongoing geopolitical uncertainties, gains are being capped by a stronger U.S. dollar and recent profit-taking activity.
đź’µ Stronger U.S. Dollar Weighs on Gold
The U.S. dollar has seen a slight uptick, putting downward pressure on gold. A stronger dollar makes gold more expensive for international buyers, leading to short-term demand weakness.
🏦 Rate Cut Expectations Supportive for Gold
Markets are increasingly pricing in the possibility that the Federal Reserve may cut interest rates later this year. This outlook is supportive of gold as lower rates reduce the opportunity cost of holding non-yielding assets like gold.
🌍 Geopolitical Uncertainty Fuels Safe-Haven Demand
Ongoing U.S.-China trade tensions and conflicts in Ukraine and the Middle East continue to support gold’s role as a safe-haven asset, boosting investor demand.
đź“… U.S. Economic Data in Focus
Recent data showed only 37,000 private-sector jobs were added in May, while the ISM Services PMI also declined—both signs of a weakening economy. A weaker-than-expected Non-Farm Payrolls (NFP) report could further strengthen the case for rate cuts and potentially drive gold prices higher. Investors are closely watching tonight’s U.S. unemployment claims as a potential early indicator of Friday’s NFP report.
đź“Š Technical Analysis
- Price is currently above both the 5-day and 20-day EMA
- RSI stands at 64, indicating bullish momentum
- Resistance levels: $3,385 and $3,433
- Support levels: $3,355 and $3,324
🧾 Summary
Gold prices remain in a consolidation phase, reflecting a tug-of-war between bullish and bearish forces. While recent U.S. dollar strength and profit-taking have added pressure, expectations of a Fed rate cut and ongoing geopolitical risks are providing a solid support base. All eyes are now on upcoming U.S. economic indicators, especially the NFP report, for clearer direction in the market.