XAUUSD - Weaker on more weak China data, technical selling

Gold prices fell in midday US trading on Wednesday, the metal falling to a four-week low. Precious metals were pressured by another economic report from China that showed less consumer demand for goods and services, including metals.

Histogram-based selling also appeared midweek, as the short-term technical views on gold and silver have turned more bearish.

Comment:

Stocks rose Thursday after a key inflation reading showed slightly less year-over-year inflation growth than expected.
🟢The Dow Jones Industrial Average advanced 337 points, or 1%.
🟢The S&P 500 climbed 0.9%, and the Nasdaq Composite rose 1.1%.

Comment:

Technically, gold price failed to sustain in its sideways range at $1,930 - $1,950 and turned down.

Comment:

Yields on 10-year US government bonds last week increased continuously, from 4% to 4.138%/year, making gold less attractive.

Comment:

Before the strength of the USD and bonds, speculators limited their holdings of precious metals, causing the world gold price to drop to 1,902 USD/ounce last night.

Comment:

BUY XAUUSD zone 1899 - 1902

SL: 1896

TP: 1905
TP: 1908

Trade closed: target reached:

It's Hit TP2 + 90pips 🧃🧃🧃

Comment:

Immediate support is the 38.2% Fibonacci retracement level at 1903. A confirmatory close under this point exposes the midpoint at 1848. Otherwise, in the event of a turn higher, keep a close eye on the falling trendline from April. This could hold as resistance, maintaining the near-term downside focus.