XAUUSD: DOWN sharply after a strong increase

Gold prices are extending their correction from an all-time high of $2,223, falling to $2,170 early Friday. Gold prices lose ground as the US dollar returns. Precious metals are currently undergoing a correction to retest the previously strong liquidity zone. The risk-on impulse and lack of demand for the yellow metal has driven it down. Today, the market awaits flash PMI and US macro data - Initial Jobless Claims and Existing Home Sales - for short-term opportunities.

In general, XAUUSD has stalled due to high profit-taking pressure, and at the same time a down trend is forming, due to profit-taking pressure but still standing at a high level when the Fed decided to keep interest rates stable. Yesterday's news from the gold market almost gained new momentum. Specifically, world gold increased sharply when the Fed decided to keep interest rates stable at this meeting, and said there would be 3 possible interest rate cuts in 2024, and the USD was weaker after this decision. . Based on this news, investors continue to buy more gold, as do the central banks of many leading countries in the world, which only favorably affects the price.

Technically, gold could fall to support before gaining further. The trend is strongly increasing. The $2150 support zone plays an important role at the moment on yesterday's news platform.

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