Asia stocks dip on Trump tariffs, tech losses; Japan aided by cooling CPI
Gold futures traded sideways on Tuesday after paring earlier gains sparked by fresh safe-haven demand. Prices briefly touched $3,434.70/oz in early Asian trading before settling back to $3,417.70/oz. The move came after President Trump announced the removal of Lisa Cook from the Federal Reserve’s board of governors, raising fresh questions about the central bank’s independence and prompting a brief selloff in the dollar.
Although prices normalized later in the session, the broader backdrop for gold remains supportive. Fed Chair Jerome Powell’s dovish Jackson Hole speech last Friday has strengthened expectations for near-term interest rate cuts. Lower rates typically boost demand for non-yielding bullion, while policy uncertainty reinforces gold’s role as a hedge.
Technical Picture: Bulls Retain the Upper Hand
From a technical standpoint, Comex gold futures remain poised to test resistance at $3,400/oz, according to RHB Retail Research. Analyst Joseph Chai notes that a recent “Doji” candlestick pattern shows a balance between bulls and bears, but the advantage leans toward the bulls. Futures are currently trading above their 20- and 50-day simple moving averages, while the Relative Strength Index has crossed the 50% threshold, signaling upward momentum.
If positive momentum continues, Chai adds, gold could break firmly above $3,400/oz and target the next resistance level near $3,500/oz. Spot gold was last up 0.3% at $3,375.79/oz, according to LSEG data.
Profit-Taking Adds to Near-Term Volatility
At the same time, gold prices slipped 0.4% to $3,353.14/oz in early Asian trade in what analysts described as routine profit-taking. XS.com’s Rania Gule emphasized that the move was corrective rather than structural, with the fundamental drivers of gold — dovish monetary policy expectations and elevated geopolitical risks — still firmly intact.
This suggests that while short-term pullbacks are possible, the underlying momentum favors further upside. The combination of political pressure on the Fed, Powell’s softer stance on rates, and lingering global uncertainties could keep investors positioned on the long side of gold, even if near-term profit-taking temporarily caps gains.
Outlook
With Fed independence under political scrutiny and Powell’s Jackson Hole speech tilting dovish, the environment for gold remains constructive. Technical signals point toward a potential breakout, while profit-taking episodes highlight the push-and-pull dynamics of a market hovering near record highs. For traders, the $3,400/oz level remains the key line to watch — a sustained break above it could open the door to $3,500/oz in the sessions ahead.