NEWS

Gold ends the week near $3,340 per ounce, after posting a slight gain of 0.13% in Friday’s session. However, it recorded a weekly loss of around 2.98%, pressured by the release of U.S. inflation data that dampened hopes for a swift interest rate cut by the Federal Reserve.

Despite the weekly decline, gold still holds strong annual gains of 35.29% compared to last year, and is up 28.26% since the start of 2025. On a monthly basis, it showed a modest increase of 0.84%, indicating a partial recovery after retreating from the 52-week high of $3,534 per ounce.

Impact of U.S. Inflation Data

The week saw the release of the U.S. Producer Price Index (PPI) for July, which rose by 0.9%, exceeding analysts’ expectations. This boosted the dollar’s value and reduced the probability of a September rate cut from 100% to around 92%. These developments placed negative pressure on gold as a non-yielding asset, prompting some investors to trim their holdings.

Nevertheless, gold continues to maintain its appeal as a safe-haven asset amid global geopolitical risks, stock market volatility, and expectations of economic slowdowns in several major economies.

Technical Outlook for Gold

From a technical perspective, gold currently appears in a relative balance between buying and selling forces, with the $3,350–$3,380 range acting as a key support and resistance zone over the past week.

Immediate supports: $3,363, followed by $3,315.

Key resistances: $3,400 (psychological barrier), then $3,411, with a potential target of $3,550 if breached.

Short-term technical indicators lean towards neutrality, while long-term moving averages suggest the continuation of the broader upward trend—indicating that any dip towards support levels may attract new buyers.

Fundamental Factors and the Role of Central Banks

Although no fresh data on central bank gold purchases emerged this week, continued institutional demand remains one of the main drivers supporting the long-term bullish trend. Some economic models suggest potential additional gains if gold breaks above current resistance levels, especially amid expectations of increased physical demand from emerging markets.

Furthermore, fluctuations in global monetary policies and the potential entry of some economies into recession could strengthen gold’s role as a hedge against inflation and currency depreciation.

Future Outlook

According to Point Trader Group analysis, gold may remain volatile in the short term between $3,350 and $3,400, with the possibility of an upside breakout if upcoming U.S. economic data falls below expectations—potentially prompting the Federal Reserve to adopt a less aggressive monetary stance.

In the medium term, holding above $3,380 would bolster the chances of a move toward $3,500, particularly if institutional investment flows continue to rise.

Summary and Gold Trading Recommendations

Overall trend: Bullish in the long term, ranging to bullish in the short term.

Buying opportunities: Near support levels of $3,363 and $3,315, targeting $3,400 and $3,450.

Selling opportunities: If $3,400 fails to break, gold could revisit support levels.

Given current market conditions, traders and investors are advised to manage risk carefully and closely monitor U.S. economic data, as it will have the greatest impact on gold’s movement in the coming weeks.

Monitoring daily gold price action through the technical and fundamental analysis provided by Point Trader Group can give investors clearer insight into market trends, helping them make more informed decisions in a volatile trading environment.