Gold:Bullish Dollar and potential downsides

In today's trading session, our focus is on XAUUSD as we identify a potential selling opportunity around the 2034 zone. Gold, amidst a downtrend, currently navigates a correction phase, nearing the 2034 support and resistance area. Adding a fundamental layer to this analysis, the recent warning from the Fed serves as a crucial factor influencing market sentiment. This cautionary stance from the Fed contributes to the overall cautious outlook on XAUUSD.

Furthermore, it's essential to delve into the relationship between Gold and the USD. Gold often exhibits a negative correlation with the USD, meaning that as the value of the USD strengthens, Gold prices tend to decline. This negative correlation stems from the fact that Gold is priced in USD globally. Therefore, any strengthening of the USD typically leads to a decrease in demand for Gold, resulting in downward pressure on its price.


Trade safe, Joe.

Comment:

Massive downsides