Gold Daily | Gold Stabilizes at $2,660 Amid Strong Dollar and Anticipated Fed Rate Cut

【Latest Gold Price and Recent Trends】

The international gold price has currently stabilized around $2,660, following a sharp decline hitting a three-week low of $2,643.32. The price drop is attributed to a strong dollar after Donald Trump's win in the U.S. presidential election and expected Fed rate cut.

【Technical Analysis】

Gold's price hovers near a critical support level of $2,643.35. A breach could lead to a further fall towards $2,625.49 and $2,605.20, while the immediate resistance is at $2,683.93. Despite the bearish trajectory, oversold indicators suggest potential short-term rebounds if gold maintains above $2,643.35.

【Market Sentiment and Economic Background】

The dollar's rise, driven by market optimism following Trump's election win, and robust U.S. economic data, have reduced gold's appeal as a safe haven. Reports indicate a resilient U.S. economy, particularly in the service sector, which further pressures gold prices. Investors are closely watching the Fed's rate decision, with a 25 basis point cut anticipated. Trump's policies could spur inflation, potentially conflicting with the Fed's efforts to control it.

【Analyst Opinions】

Some analysts believe Trump's fiscal expansion policies may ultimately support gold prices by amplifying inflationary pressures, potentially delaying further rate hikes. Short-term, gold faces pressure from a stronger dollar, but accelerated inflation may prompt investors to return to gold as a hedge. In the medium-term, forecasts suggest gold could recover if geopolitical or economic uncertainties rise again.