IGI Logo

Gold has lost momentum below $4,300, pressured by profit-taking and weak liquidation from short-term futures traders, while optimism around Ukraine peace talks dampens safe-haven demand. Despite near-term selling, the US Federal Reserve’s recent rate cuts and signals of further reductions in 2026 support gold as a non-yielding asset. Technically, gold remains in a long-term uptrend, well-supported above the 100-day EMA, with RSI near 60 indicating bullish momentum. Immediate resistance lies at $4,350, while support levels are at $4,270 and $4,210. Upcoming US economic data, including Nonfarm Payrolls and Retail Sales, may influence gold’s short-term direction.

Key Highlights

* Gold slips below $4,300 due to profit-taking and weak short-term liquidation.

* Ukraine peace optimism limits safe-haven demand for the yellow metal.

* Fed’s recent rate cuts and dovish signals support gold’s medium-term outlook.

* Technical show gold in long-term uptrend, supported above 100-day EMA.

* Key levels: Resistance $4,350/$4,380, support $4,270/$4,210.

Gold prices lost momentum below the $4,300 mark, weighed down by profit-taking and limited liquidation from short-term futures traders. Adding to the near-term pressure, optimism over Ukraine peace talks reduced safe-haven demand, keeping the yellow metal from sustaining stronger gains. US officials indicated that a near-complete agreement with Ukrainian President Zelenskyy is in sight, although unresolved territorial disputes and security guarantees remain sticking points.

Despite the pullback, gold’s downside appears limited due to the Federal Reserve’s recent policy actions. The Fed delivered its third rate cut of the year and indicated further reductions in 2026, lowering the opportunity cost of holding non-yielding assets like gold. Market participants are closely watching US economic indicators, including Nonfarm Payrolls, Retail Sales, and the PMI report, as these could influence the future path of interest rates and gold demand.

On the technical front, gold maintains a constructive long-term setup. The four-hour chart shows the price supported above the 100-day EMA, suggesting the path of least resistance remains upward. The Bollinger Bands are widening, while the 14-day Relative Strength Index (RSI) hovers near 60, signaling strengthening bullish momentum. Immediate resistance levels are observed at $4,350 and $4,380, with a further hurdle at $4,425. On the downside, support zones lie at $4,270 and $4,210, with the 100-day EMA acting as a key pivot.

Overall, while gold faces short-term consolidation pressures, supportive Fed policy, technical strength, and potential US economic slowdowns underpin its medium-term bullish outlook.

Above views are of the author and not of the website kindly read disclaimer