Gold prices (XAU/USD) inched higher on Friday, recovering part of Thursday’s drop to a two-week low as the US Dollar’s Producer Price Index (PPI)-driven rally lost steam. The metal remains supported by expectations that the Federal Reserve will resume rate cuts in September, providing a boost to non-yielding assets.
Market sentiment has shifted as traders now price in a 90% probability of a September cut, with potential for two more by year-end, according to CME’s FedWatch Tool. While hotter-than-expected PPI data initially spurred USD strength, follow-through buying faded in the Asian session, limiting the downside for gold.
Global optimism — driven by an extended US-China tariff truce and hopes for progress in the upcoming US-Russia summit — has supported risk appetite. This “risk-on” tone has capped gold’s upside, but the broader technical outlook still favors support at $3,330.
Technical Outlook
Gold remains below its 100-hour Simple Moving Average (SMA) near $3,355, a key resistance level for any meaningful recovery. A move above this zone could open the way toward $3,375 and potentially $3,400.
On the downside, a break below $3,330 could expose the $3,300 level, with sustained selling pressure likely to confirm a short-term bearish bias.
Key Levels to Watch:
- Resistance: $3,355, $3,375, $3,400
- Support: $3,330, $3,300
Gold is on track to post its first weekly loss in three weeks, with upcoming US economic data — including retail sales and consumer sentiment — expected to guide short-term direction.
📊 Stay updated with live market coverage on www.dailygold.pk