Gold Slips From Two-Week High as Dollar Strengthens.
Gold retreats from two-week high as US Dollar strengthens, Fed uncertainty in spotlight
FUNDAMENTAL OVERVIEW:
Gold (XAU/USD) is trading under slight pressure on Wednesday as the US Dollar (USD) regains momentum, despite political turbulence linked to President Donald Trumpâs push to oust Federal Reserve (Fed) Governor Lisa Cook.
At the start of the US session, XAU/USD is hovering near $3,380 after briefly dipping to $3,373 during Asian trading, reflecting mild profit-taking from its recent two-week high. Still, downside risks appear limited as markets weigh uncertainty over the Fedâs independence alongside the dovish undertone in Chair Jerome Powellâs Jackson Hole speech, where he suggested that conditions âmay warrantâ rate cuts in the near future.
Trumpâs effort to remove Cook seems driven less by disputed mortgage-fraud allegations and more by a bid to reshape monetary policy for political gain. On Tuesday, he asserted that he expects to soon control a âmajorityâ on the Fedâs Board of Governors, potentially steering the institution toward deeper rate cuts. Cook, however, has refused to step down and is preparing to fight the decision in court, setting up a legal showdown that could test the boundaries of presidential authority over the Fed.
GOLD TECHNICAL ANALYSIS CHART:
Technical Overview:
Gold is trading within an up channel.
Gold is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 3409.00
Immediate support level: 3352.39
HOW TO TRADE GOLD
Gold retreated after a sharp rally, facing rejection before attracting fresh buying interest that fuelled a strong breakout above a key resistance zone. The metal is now easing back to retest this area as support. If buyers successfully defend the level, Gold could regain upward momentum and extend its advance.