**Gold at Risk of Correction as Risk-On Sentiment Returns**
Gold is showing signs of weakness after an extended rally, with technical indicators now pointing toward a potential correction. The metal, currently hovering around the 3275 USD level, faces a critical test—if this key daily support breaks, a deeper slide may unfold.
After months of rising prices driven by safe-haven demand, the shift in market tone could weigh on gold. Risk-on sentiment is creeping back in, helping equities while reducing demand for defensive assets like gold. This environment may cause gold to lose some of its recent shine.
Momentum indicators on the daily chart are starting to roll over, and RSI has turned lower from overbought territory. A break below 3275 could open the door to a retest of the 3200–3220 zone.
Additionally, stronger economic data and less dovish central bank talk may reduce the need for gold as a hedge. Real yields have also stabilized, which could further weaken gold’s appeal.
Unless gold manages to reclaim bullish momentum quickly, traders should prepare for a possible trend change. For now, caution is warranted. A close below key support could confirm a short-term reversal and attract further selling pressure.
Gold is showing signs of weakness after an extended rally, with technical indicators now pointing toward a potential correction. The metal, currently hovering around the 3275 USD level, faces a critical test—if this key daily support breaks, a deeper slide may unfold.
After months of rising prices driven by safe-haven demand, the shift in market tone could weigh on gold. Risk-on sentiment is creeping back in, helping equities while reducing demand for defensive assets like gold. This environment may cause gold to lose some of its recent shine.
Momentum indicators on the daily chart are starting to roll over, and RSI has turned lower from overbought territory. A break below 3275 could open the door to a retest of the 3200–3220 zone.
Additionally, stronger economic data and less dovish central bank talk may reduce the need for gold as a hedge. Real yields have also stabilized, which could further weaken gold’s appeal.
Unless gold manages to reclaim bullish momentum quickly, traders should prepare for a possible trend change. For now, caution is warranted. A close below key support could confirm a short-term reversal and attract further selling pressure.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.