Continuing the downward price channel, how far will Gold fall?

World gold prices this morning tended to increase with spot gold increasing by 1.2 USD compared to last week's closing level to 1,939 USD/ounce.

Last week, the gold market witnessed its second consecutive week of decline due to weak safe-haven demand while US Federal Reserve Chairman Jerome Powell took a hawkish stance on monetary policy.

According to City Index market analyst Fawad Razaqzada, Mr. Powell's hawkish stance was the main reason why gold prices weakened last week. In addition, investors' risk appetite has improved in the past few weeks as the Israel-Hamas conflict has not made much progress, also reducing demand in the gold market.

Gold bars have lost about 70 USD since reaching over 2,000 USD/ounce thanks to safe-haven demand due to escalating tensions in the Middle East.

Fed officials, including Mr. Powell, say they are still unsure whether interest rates will be high enough to end the war on inflation, pushing up 10-year Treasury yields and the U.S. index. The Dollar Index rose, thereby making non-interest-bearing gold less attractive to investors.

Comment:

☄️XAUUSD SELL1940- 1942

✔️TP1 : 1934
✔️TP2 : 1928

⚠️SL: 1950

Comment:

Instead of focusing on geopolitical tensions, investors turned their attention to monetary policy stance. This is detrimental to gold as Fed officials support tightening interest rates. While the Fed emphasized that future decisions will depend on data, this week's consumer price index report will be of particular interest to the market. Economists predict 12-month inflation will rise 3.3%, compared with an annual increase of 3.7% recorded in September.