- For four consecutive trading sessions, the price of gold has been in an upward rebound, extending to the resistance level of $2420 per ounce at the time of writing.
- Clearly, this rise faces pressure from the increasing dollar value as investors assess the impact of the attempted assassination of former US President Donald Trump on the financial markets.
- Moreover, traders fear that further political violence could trigger instability and market volatility, although analysts have pointed out that the attack increases Trump’s chances of winning the election.
Meanwhile, the price of gold recorded its third consecutive weekly gain on Friday, as slowing inflation in the United States strengthened bets on a US interest rate cut by the Federal Reserve. According to the results of the economic calendar, the data of last week showed that consumer prices in the United States fell for the first time in four years in June, which strengthened expectations of a Federal Reserve rate cut in September.
Now, Investors are looking forward to the latest statements by Federal Reserve Chairman Jerome Powell on Monday and more US economic reports this week for further guidance. Meanwhile, data indicated that actual demand for gold in Asia declined last week as rising prices sparked market caution.
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According to factors affecting the gold market, the dollar price is rising on safe-haven demand. According to electronic trading platforms, the US dollar price rose to 104.2 on Monday, after falling below 104.1 on Friday, its lowest level since June 3. The assassination attempt on Donald Trump over the weekend is alleged to have increased the chances of his victory in the US presidential election, which pushed the dollar higher.
Trump’s policies, such as a tough trade stance, lenient regulations, and proposed tax cuts, are likely to boost inflation. In the meantime, traders continue to bet that the Federal Reserve will cut US interest rates in September, with a 94% probability, as consumer prices for June fell short of expectations. The dollar strengthened across the board, but traders remained alert about a possible further intervention in the yen.
On the other hand, the US 10-year Treasury yields rose due to Trump’s attack.
US 10-year Treasury yields rose due to the Trump attack. Trading saw the yield on 10-year US Treasury bonds rise above 4.2% on Monday, rebounding slightly from its lowest levels in four months, as the attempted assassination of US presidential candidate Donald Trump increased the likelihood of his return to the White House in November. Markets viewed a Trump victory as bullish for Treasury yields due to his inflationary policies of tax cuts, stricter immigration policies, and higher tariffs on imports. Meanwhile, the 10-year bond yield was under pressure last week as the US inflation slowdown bolstered bets on rate cuts by the Federal Reserve.
Overall, US markets stabilize after Trump assassination attempt. US stock futures, the dollar and Treasury yields rose on Monday as markets reacted to the assassination attempt on former President Donald Trump over the weekend that could have dire implications for the US political landscape. The attack left one attendee and the gunman dead, two others in critical condition, and Trump was shot.
Finally, traders fear that further acts of violence could trigger political instability and market volatility, although analysts have pointed out that the attack increases Trump’s chances of regaining the White House in November.
Gold Price Forecast and Analysis Today:
According to the performance on the daily chart attached, gold is on a strong upward trajectory supported by a move above the psychological resistance of $2,400 per ounce. Moreover, further gains towards the resistance levels of $2,420 and $2,435 per ounce will move technical indicators towards strong overbought levels. Obviously, Profit-taking will not happen without a recovery in the US dollar and calming of geopolitical tensions, which are the most prominent factors behind gold’s recent gains. Currently, the closest support levels for gold are $2,400 and $2,379 per ounce, respectively. Ultimately, we still prefer to buy gold from every downward level.
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