Since reaching a historic high of $3,509 on April 22, 2025, gold has struggled to maintain its upward momentum. On the daily timeframe, the price experienced a sharp rejection spike after touching that peak, prompting a sideways range as the market seeks a clearer direction.
From a technical perspective, a stronger US dollar typically puts downward pressure on gold, making it a more expensive investment for holders. However, examining the chart of GC1!* alongside the DXY shows that even during periods of a robust dollar, gold has continued to rise. Additionally, recent years have seen seasonality effects on gold largely ignored, with the yellow metal persistently climbing. The underlying reasons are multifaceted, but a key factor is gold’s status as a safe-haven asset—investors prefer to hold gold during times of uncertainty and economic turmoil.
* GOLD and DXY correlation
Looking ahead, investors are awaiting the Federal Reserve’s upcoming monetary policy announcement scheduled for Wednesday. According to the CME FedWatch tool, the consensus is that the Fed will keep interest rates steady at 4.25%-4.50%, marking the fifth consecutive meeting with unchanged rates.
From both fundamental and technical viewpoints, recent data suggest a cautious outlook. Notably, non-commercial traders added nearly 40,000 long contracts last week, indicating bullish sentiment. Conversely, retail traders have reduced their positions, which could signal a potential shift in market dynamics.
The key question remains: where might be a strategic entry point if gold resumes its upward trend?
In the chart, I’ve highlighted two daily demand zones and a strong weekly demand area. There’s a possibility that the price may not revisit the weekly demand zone to accommodate new longs, instead triggering entry signals from one of the daily demand zones. I recommend adding these zones to your watchlist as potential entry points.
What are your thoughts? I look forward to your insights!
✅ Please share your thoughts about GC1! in the comments section below and HIT LIKE if you appreciate my analysis. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
From a technical perspective, a stronger US dollar typically puts downward pressure on gold, making it a more expensive investment for holders. However, examining the chart of GC1!* alongside the DXY shows that even during periods of a robust dollar, gold has continued to rise. Additionally, recent years have seen seasonality effects on gold largely ignored, with the yellow metal persistently climbing. The underlying reasons are multifaceted, but a key factor is gold’s status as a safe-haven asset—investors prefer to hold gold during times of uncertainty and economic turmoil.
* GOLD and DXY correlation
Looking ahead, investors are awaiting the Federal Reserve’s upcoming monetary policy announcement scheduled for Wednesday. According to the CME FedWatch tool, the consensus is that the Fed will keep interest rates steady at 4.25%-4.50%, marking the fifth consecutive meeting with unchanged rates.
From both fundamental and technical viewpoints, recent data suggest a cautious outlook. Notably, non-commercial traders added nearly 40,000 long contracts last week, indicating bullish sentiment. Conversely, retail traders have reduced their positions, which could signal a potential shift in market dynamics.
The key question remains: where might be a strategic entry point if gold resumes its upward trend?
In the chart, I’ve highlighted two daily demand zones and a strong weekly demand area. There’s a possibility that the price may not revisit the weekly demand zone to accommodate new longs, instead triggering entry signals from one of the daily demand zones. I recommend adding these zones to your watchlist as potential entry points.
What are your thoughts? I look forward to your insights!
✅ Please share your thoughts about GC1! in the comments section below and HIT LIKE if you appreciate my analysis. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
✅ TELEGRAM CHANNEL: t.me/+VECQWxY0YXKRXLod
🔥 USA ZERO SPREAD BROKER: forexn1.com/usa/
🔥 UP to 4000$ BONUS: forexn1.com/broker/
🟪 Instagram: instagram.com/forexn1_com/
🔥 USA ZERO SPREAD BROKER: forexn1.com/usa/
🔥 UP to 4000$ BONUS: forexn1.com/broker/
🟪 Instagram: instagram.com/forexn1_com/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.