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Published: 19 June 2026,07:18
Daily Market Analysis New
*US dollar records its strongest two-day rally in three months
*Markets price in a higher chance of rate hikes as soon as late next month
*Gold weakens as stronger USD and rising yields reduce demand for non-yielding assets
The Dollar Index, which tracks the greenback against a basket of six major currencies, recorded its strongest two-day rally in three months as investors increased bets that the Federal Reserve may begin raising interest rates as soon as late next month.
Following the latest FOMC minutes and hawkish remarks from new Fed Chair Kevin Warsh, bond markets came under renewed pressure, while U.S. Treasury yields continued to rise. The Fed’s firmer policy tone reinforced expectations that interest rates may need to stay restrictive, especially if inflation pressures remain persistent.
The stronger rate outlook provided solid support for the U.S. dollar, as higher yields increased the appeal of dollar-denominated assets. Market participants are now shifting their focus back toward monetary policy expectations after recent geopolitical risks had temporarily dominated market direction.
Gold prices eased as the stronger U.S. dollar and rising Treasury yields reduced the appeal of non-yielding bullion. Although easing geopolitical tensions may help lower inflation concerns, the market’s primary focus has shifted back toward the Fed’s policy path and the possibility of further tightening.
With investors pricing in a more hawkish monetary policy outlook, gold may remain under pressure in the short term. Unless Treasury yields retreat or geopolitical risks resurface, upside momentum for the precious metal could remain limited.
Technical Analysis
Gold prices are trading lower after a breakdown below the previous 4,235.00 support level, confirming a bearish short-term structure.
Momentum indicators continue to support the downside bias. The MACD is strengthening in bearish territory, while the RSI at 36 remains below the midline, suggesting selling pressure may persist.
If bearish momentum continues, gold could extend losses toward the next support at 4,075.00, followed by 4,000.00 if downside pressure accelerates.
However, if bearish momentum begins to fade, gold may stage a technical rebound and retest the 4,235.00 resistance level, with further upside toward 4,370.00 if recovery strengthens.
Resistance Levels: 4235.00, 4370.00
Support Levels: 4075.00, 4000.00
The dollar index is trading higher, currently testing the 100.90 resistance level, which acts as a key near-term breakout zone.
A confirmed breakout above 100.90 could extend gains toward the next resistance at 101.85, reinforcing the bullish structure.
However, momentum indicators are showing signs of exhaustion. The MACD is losing bullish momentum, while the RSI at 73 has entered overbought territory, suggesting an increased risk of a near-term technical correction.
If bullish momentum fails to sustain, the index may retrace toward the 100.10 support level, with further downside toward 99.50 if selling pressure intensifies.
Resistance Levels: 100.90, 101.85
Support Levels: 100.10, 99.50
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