Fed Pressure on Gold Intensifies: Major Bank Revises Year-End Target
The spot gold price remains under pressure, falling to $4,022 per ounce ahead of the US Federal Reserve's (Fed) interest rate decision. Gram gold is trading around TRY 6,148. Markets are closely monitoring the impact of expectations regarding the Fed's monetary policy, as well as the rise in the dollar index, on gold prices.
While probabilities surrounding the Fed's rate decision shape investor risk appetite, a strengthening dollar is exerting downward pressure on the spot gold price. These developments have led to a reassessment of critical thresholds in the gold market. Notably, a major bank's revision of its year-end gold price target stands out as a significant market development.
The bank in question has offered a new perspective on the trajectory of gold prices with its revised year-end forecast. This has prompted investors to reassess their gold positions, while the $4,000 per ounce level is being watched as a psychological support for spot gold. Gram gold, meanwhile, is following a volatile path tied to currency movements.
Market participants believe that the Fed's statements and potential directional changes in the dollar index will be decisive for gold prices. In the coming period, if the spot gold price falls below the $4,000 level, selling pressure could increase, but geopolitical risks and inflation concerns are noted as factors that could keep demand for gold alive.
This is not investment advice.
The news headline indicates that pressure on gold from the Federal Reserve is increasing, and a major bank has lowered its year-end target. Technical indicators support this view: the RSI at 39.4, though near oversold territory, remains weak; the MACD is below the signal line and in negative territory. Short-term SMAs (20 and 50) staying well below the current price suggest the downtrend may continue. However, the low RSI level also brings the possibility of short-term bargain buying.
The DXY is trading at 101.35, posting a slight decline on a 24-hour basis. The RSI stands at 41.4, indicating weak momentum, while the MACD remains below the signal line and in negative territory, suggesting continued short-term downside pressure. The price has closed below both the 20-day and 50-day moving averages (101.43 and 101.42, respectively), pointing to sustained selling pressure from a technical perspective. News headlines highlight increased Fed pressure on gold and a major bank revising its year-end target, which could typically boost expectations for a stronger dollar. However, current technical weakness and a low RSI imply potential for further declines in the near term. Therefore, the short-term outlook is bearish, though confidence is moderate as the news impact may not fully align with the technical picture.
