Strong Dollar and Easing Geopolitical Risks Put Pressure on Gold Market.
The easing of tensions in the Middle East and progress in negotiations between the United States and Iran have reduced gold's appeal as a safe-haven asset. The gradual return of oil tanker traffic through the Strait of Hormuz has also eased concerns about disruptions to energy supplies, removing part of the geopolitical risk premium previously embedded in gold prices.
Meanwhile, markets are closely watching the upcoming U.S. PCE inflation data. Higher-than-expected inflation could strengthen expectations for further interest rate hikes. Rising interest rates are generally negative for gold and supportive of the U.S. dollar.
From a technical perspective, gold remains in a downtrend on the H4 chart, with signs of continued price weakness. Overall, easing political risks, a stronger dollar, and the possibility of a more hawkish Federal Reserve stance are increasing downward pressure on gold prices.
Technical Analysis:
On the H4 timeframe, gold continues to trade in a bearish trend. The MACD lines and histogram remain below the zero line and are expanding, indicating strengthening bearish momentum.
The easing of tensions in the Middle East and progress in negotiations between the United States and Iran have reduced gold's appeal as a safe-haven asset. The gradual return of oil tanker traffic through the Strait of Hormuz has also eased concerns about disruptions to energy supplies, removing part of the geopolitical risk premium previously embedded in gold prices.
Meanwhile, markets are closely watching the upcoming U.S. PCE inflation data. Higher-than-expected inflation could strengthen expectations for further interest rate hikes. Rising interest rates are generally negative for gold and supportive of the U.S. dollar.
From a technical perspective, gold remains in a downtrend on the H4 chart, with signs of continued price weakness. Overall, easing political risks, a stronger dollar, and the possibility of a more hawkish Federal Reserve stance are increasing downward pressure on gold prices.
Technical Analysis:
On the H4 timeframe, gold continues to trade in a bearish trend. The MACD lines and histogram remain below the zero line and are expanding, indicating strengthening bearish momentum.
