Gold dips amid risk‑on sentimen
📊 Gold Market Analysis – August 14, 2025
Gold (XAU/USD) retreated after hitting a multi-day high around $3,375, as the prevailing risk-on sentiment in global markets reduced demand for safe-haven assets. Nevertheless, supportive factors remain in place for buyers, and the likelihood of renewed demand during price pullbacks persists.
One key driver is the rising probability of a U.S. Federal Reserve interest rate cut at the September meeting. Recent inflation data, coupled with relative weakness in the latest U.S. Nonfarm Payrolls report, have strengthened this outlook. The CME Group’s FedWatch Tool shows the market is nearly certain the Fed will cut rates at least twice by year-end. This expectation continues to pressure the U.S. dollar and supports non-yielding assets like gold.
Meanwhile, Asian equity markets (except Japan’s Nikkei) extended their upward momentum, following historic gains in the S&P 500 and Nasdaq indices on Wall Street. This optimistic environment has weighed on the appeal of safe-haven assets and limited further upside for gold.
From a technical standpoint, the overnight breakout above the $3,360 resistance level, coupled with price holding above the 200-period moving average on the 4-hour chart, is a constructive sign for buyers. However, short-term technical indicators have yet to confirm a strong bullish momentum, suggesting caution before re-entering aggressive long positions.
A sustained move above $3,375 could open the door to the psychological $3,400 level, followed by last week’s swing high at $3,409–$3,410, and the intermediate resistance at $3,422–$3,423. Continued momentum might even pave the way toward the record high of $3,500.
On the downside, key support is seen near $3,331. A break below this level could push prices toward $3,300, and a decisive move under that threshold may shift the short-term market bias in favor of sellers.
📌 Traders now await the release of the U.S. Producer Price Index (PPI), which could present meaningful trading opportunities later in the day. 🧭 Summary for Forex Traders
💡 Gold eases from $3,375 on risk‑on mood; rate‑cut bets still support buyers above $3,331 key level