Analysis of today's market

On Tuesday, it traded at around $2,600, marking a seven-week low. The strengthening of the US dollar, perceived by the market as favorable due to President-elect Donald Trump's economic policies, exerted pressure on precious metals. Given that gold is primarily priced and traded in US dollars, a mere strengthening of the dollar is often sufficient to drive down its price.

Trump has promised to impose tariffs on imported goods, cut taxes, and deport millions of illegal immigrants, which could push up prices in the United States and inflate inflation. This could lead the Federal Reserve to slow down the pace of interest rate cuts in an attempt to address the resulting inflation. Relatively higher interest rates are negative for gold as they increase the opportunity cost of holding non-interest-bearing assets.

Gold hovered around 2597, with a high of nearly 2608 and a low of around 2594 as of press time. Keep an eye on the resistance levels at 2620-2630-2640. If these levels are not breached, it will test the support levels at 2580-2570-2560.