Gold Defies Strong Dollar with Robust Long-Term Bullish Structure

Despite a strong US dollar and higher policy rates, gold has maintained its long-term bullish structure. According to Equiti's analysis, gold futures contracts have depreciated by 0.93% to $4,383 per ounce due to the heightened likelihood of another interest rate hike at the October meeting.

The Federal Reserve (Fed) is expected to raise its benchmark interest rate by 25 basis points, bringing the policy rate to 4.0%. The US Dollar Index (DXY) has appreciated by 1.70% over the past fortnight, but gold prices have retained their long-term bullish technical structure.

Gold has accumulated gains of approximately 5% over the past three months and recorded a year-on-year appreciation of 17.73%, despite the DXY's 2.80% YoY increase. Technical analysis reveals that gold futures continue to follow a robust long-term bullish trajectory, with prices remaining above both the 50-day and 100-day Simple Moving Averages (SMAs).