GCAP GOLD Flags Gold Resistance at $4,375 After Dollar Strengthens, Eyes Trump–Xi Jinping Meeting

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Summary · why it matters

Gold prices have come under selling pressure once again after recovering from below $4,300, weighed down by the dollar index climbing to its highest level since July 30. The Fed's tight monetary policy stance continues to pressure non-yielding gold in the short term. The Fed raised rates at its September meeting and signaled it may hike again this year, leading the market to price in roughly a 90% chance of a December rate increase, which remains a supportive factor for the dollar. Meanwhile, the situation in the Middle East remains uncertain. Although President Trump said talks with Iran were going well, no details of an agreement have emerged, while the US has begun enforcing additional sanctions on Iran. However, falling oil prices have helped ease inflation concerns and pushed US bond yields down from earlier highs, which may help limit gold's selling pressure. The market is also awaiting Thursday's meeting between President Trump and President Xi Jinping, which could affect market confidence and the dollar's direction. From a technical perspective, gold remains in a short-term consolidation phase after its rebound was capped at resistance around $4,375. RSI is hovering near the midpoint and MACD remains in negative territory, suggesting buying momentum is not strong enough to confirm a recovery. If prices break above $4,375, there is a chance to test key resistance at $4,400, and a further break would open the way to $4,515. Key support sits at $4,310; a clear break below would risk a decline to test $4,285 and then $4,225.

Impact on assets 3

Others▲ · 2 stocks
％Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

Fed raised rates in September and signaled another hike this year, with ~90% odds priced for December, keeping the effective funds rate elevated.

Others▼ · 1 stocks
⛏Gold Futures
GOLD
▼ NegativeMonetaryrelevance

Gold faces selling pressure as the dollar index hits its highest since July 30 and Fed tightening keeps rates high, capping the rebound at $4,375 resistance.

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