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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In the wake of the hawkish signals from the Federal Reserve, gold is set to extend losses as the dollar strengthens. According to a Wall Street Journal report and Maybank, gold fell in early Asian trade, weighed down by a strong repricing of the dollar following the Fed's latest meeting. The decline comes amid higher real yields, which reduce gold's appeal as a non-yielding asset.
Gold had rallied in previous sessions on expectations of early rate cuts, but the Fed's hawkish stance forced a sharp repricing. Per market data, the US dollar index (DXY) rose to 104.5 in Asian trading, adding headwinds for gold. Meanwhile, silver futures held below $30 per ounce, as dollar strength continued to pressure precious metals.
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Sign InAs of the June 29 close, spot gold was trading at $3992.57 per ounce, with support seen at $2,300 and resistance at $2,350 in the near term. Markets are looking ahead to US jobs data and the July CPI release for further clues on the rate path, as well as any Fed officials' remarks that could reinforce or soften the hawkish stance.