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Published: 24 July 2026,08:08
Daily Market Analysis New
*US dollar continues to strengthen as surging oil prices revive inflation concerns
*Stronger-than-expected jobless claims data reinforces confidence in the US economy
*Gold remains under pressure as stronger USD and higher yields outweigh safe-haven demand
The Dollar Index, which tracks the greenback against a basket of six major currencies, continued to extend gains as surging oil prices revived inflation concerns. With crude oil potentially retesting the $100 level, traders are reassessing whether energy-driven inflation could force the Federal Reserve to maintain a more hawkish policy stance.
The dollar was also supported by stronger-than-expected US labor data. According to the Department of Labor, US Initial Jobless Claims came in at 187K, well below market expectations of 211K. The data reinforced confidence in the resilience of the US economy and suggested that the labor market remains strong despite higher borrowing costs.
The combination of resilient economic data and rising oil-led inflation risks pushed US Treasury yields higher, with yields reaching their highest level since 15 January 2025. Higher yields continue to support demand for the greenback, as investors price in the possibility that the Fed may need to keep policy restrictive for longer.
This stronger dollar and higher-yield environment continued to weigh on gold. The precious metal retreated further as investors reduced exposure to non-yielding assets, especially as Treasury yields remained firmly supported by inflation concerns.
Although escalating Middle East tensions would normally increase safe-haven demand for gold, the market is currently more focused on the inflationary impact of higher oil prices. If energy costs continue rising, the Fed may face renewed pressure to tighten monetary policy or delay any shift toward easing.
Technical Analysis
Gold prices are trading lower, currently testing the 4,040.00 support level, which acts as a key near-term downside pivot.
Market attention remains focused on a potential breakdown below this zone. A confirmed break below 4,040.00 could extend losses toward the next support level at 3,960.00, reinforcing the bearish structure.
However, momentum indicators suggest that selling pressure may be easing. The MACD is showing diminishing bearish momentum, while the RSI at 35 has entered oversold territory, indicating the possibility of a short-term technical rebound.
If bearish momentum fails to persist, gold may recover and consolidate back toward the 4,125.00 resistance level, followed by 4,215.00 if recovery momentum strengthens.
Resistance Levels: 4125.00, 4215.00
Support Levels: 4040.00, 3960.00
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