Gold retreats as Fed rate hopes fade
Why it matters: Gold prices are under pressure, with a key support level at $4,400 an ounce, impacting investors and the broader market.
- Gold prices fell 3.72% to $4,606 an ounce, retreating from two-week highs after President Trump's address on the Iran conflict.
- US President Donald Trump's statement on aggressive strikes in Iran, despite nearing strategic objectives, reduced expectations for a Fed rate cut.
- Jaronvet Saksri (Pi Securities) predicts gold will hold above $4,500 an ounce, with a key support level at $4,400 an ounce and domestic support at 66,900 baht.
- YLG Bullion & Futures and Globlex Research Department concur that gold remains under selling pressure, failing to break the $4,800 an ounce resistance, with rising oil prices fueling inflation concerns and reducing rate cut likelihood.
- SPDR Gold Trust reduced its gold holdings amid ongoing uncertainties, contributing to the downward pressure on bullion.
- The 10-year US Treasury yield and the dollar index both rose following Trump's speech, further pressuring dollar-denominated gold.
Gold prices are retreating from recent highs as President Trump's statements on the Iran conflict dampen hopes for a Federal Reserve interest rate cut, with analysts like Jaronvet Saksri of Pi Securities and research from YLG Bullion & Futures and Globlex Research Department agreeing on continued selling pressure. The market is now eyeing key support levels of $4,400 an ounce and 66,900 baht domestically, while awaiting US non-farm payroll data for further Fed policy indications.
