Gold | Fed caution and strong dollar pressure on prices

Gold prices fell to nearly $4,800 an ounce, ending a brief rebound brought about by a rising dollar after the Federal Reserve became cautious about cutting interest rates. Fed Governor Lisa Cook highlighted ongoing inflation risks, while the nomination of Kevin Warsh as the new Fed chair reinforced expectations of a slowdown in the monetary easing cycle.

U.S. economic data were mixed, exacerbating volatility, with the ADP employment index weakening and the ISM services PMI strengthening, while U.S.-Iran tensions continue to pose a potential risk environment.

Technical Outlook: Gold prices maintain their downward trend, trading below the $4853-4891 level.

As long as the price remains below this area, downward pressure is expected to continue towards 4762, then 4674, and then 4610.

If the 1-hour candle closes above 4891 points, the downtrend is invalidated and recovery towards 4974 and 5098 points is supported.

⚠️Expect high volatility in both directions.

critical level
• Pivot: 4853
• Support: 4763 – 4675 – 4610
• Resistors: 4891 – 4975 – 5020

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