Gold Struggles at Resistance but Holds Monthly Gains.
Gold Price Outlook – Gold Struggles to Break Above Resistance.
FUNDAMENTAL OVERVIEW:
Gold prices edged slightly lower on Friday but remained on track for strong monthly gains, supported by growing expectations of a September Federal Reserve rate cut. Spot gold has risen nearly 4% in August, trading less than $100 shy of its April record high.
The rally in the yellow metal was driven largely by increasing bets on Fed easing as signs of a cooling U.S. labor market emerged. Fed Chair Jerome Powell acknowledged the slowdown and left the door open to a 25-basis-point cut in September, though he struck a cautious tone on future policy moves, citing inflation risks tied to President Donald Trump’s tariffs.
Markets nonetheless boosted their rate cut bets, with CME FedWatch showing an 82.9% probability of a September reduction. This outlook pressured the dollar, which has slid almost 2% in August, and lent broader support to metals.
However, the Fed has emphasized inflation as the key driver of its policy stance. Any signs of persistent price pressures could challenge rate cut expectations. August inflation data, reflecting the bulk of recent tariffs, will be closely watched for further clues on the Fed’s next steps.
GOLD TECHNICAL ANALYSIS CHART:
Technical Overview:
Gold is trading within an up channel.
Gold is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Bullish Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 3435.00
Immediate support level: 3394.84
HOW TO TRADE GOLD
Gold, after a sharp rally to the upside, has paused and entered a consolidation phase. Despite minor pullbacks, it maintained its bullish attempts. Recently, the metal displayed strength by breaking above a key resistance level and successfully retesting it. As long as prices hold above this zone, further upside potential remains intact.