XAUUSD slid rapidly from 2400 USD
Hello all dear traders!
Overall, as expected, the gold market quickly retreated from the $2,400 level, losing a loss of $65 in just one day.
It can be seen that gold today touched the 2300 USD mark but it quickly bought back the decrease, recovering 10 USD in this period. It is currently trading at $2310. So what are the reasons and factors that cause gold prices to drop so sharply?
Regarding impact factors: Easing fears of widespread conflict in the Middle East have increased investors' risk appetite, thereby reducing safe-haven demand for gold bars.
Currently, the market is waiting for the personal consumption expenditure (PCE) report to be released this Friday. ActivTrades senior analyst Ricardo Evangelista predicts that upcoming data may confirm that inflation is still "persistent", which is likely to cause the US Federal Reserve (Fed) to delay cutting cuts. interest rates. This is a scenario that is not very favorable for gold.
In this scenario, it would not be surprising if we expected the XAUUSD pair to fall further. Looking ahead, the 34.89 exponential moving average is showing the resolve of the bears, the price could quickly test this resistance clearly established on the H4 chart. But! A look at the fundamentals and technical stubbornness will quickly roll back any meaningful growth. And if the price quickly returns to the above support level as expected then the possibility of a breakout will increase first to $2300 below which there is a large amount of liquidity the price could possibly test again.
Finally, good luck
Overall, as expected, the gold market quickly retreated from the $2,400 level, losing a loss of $65 in just one day.
It can be seen that gold today touched the 2300 USD mark but it quickly bought back the decrease, recovering 10 USD in this period. It is currently trading at $2310. So what are the reasons and factors that cause gold prices to drop so sharply?
Regarding impact factors: Easing fears of widespread conflict in the Middle East have increased investors' risk appetite, thereby reducing safe-haven demand for gold bars.
Currently, the market is waiting for the personal consumption expenditure (PCE) report to be released this Friday. ActivTrades senior analyst Ricardo Evangelista predicts that upcoming data may confirm that inflation is still "persistent", which is likely to cause the US Federal Reserve (Fed) to delay cutting cuts. interest rates. This is a scenario that is not very favorable for gold.
In this scenario, it would not be surprising if we expected the XAUUSD pair to fall further. Looking ahead, the 34.89 exponential moving average is showing the resolve of the bears, the price could quickly test this resistance clearly established on the H4 chart. But! A look at the fundamentals and technical stubbornness will quickly roll back any meaningful growth. And if the price quickly returns to the above support level as expected then the possibility of a breakout will increase first to $2300 below which there is a large amount of liquidity the price could possibly test again.
Finally, good luck
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