Gold-> continue to drop to $ 2600. What will happen?
Updated
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Gold prices dropped to their lowest level in a week during the Asian session on Tuesday, although spot prices found some support near the $2,600 mark.
Meanwhile, the prevalent risk-on environment, coupled with bets for slower Fed rate cuts and rising U.S. Treasury yields, is driving flows out of the safe-haven XAU/USD. Theoretically, any attempt to push gold prices higher may face limitations.
Ahead, the U.S. Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred measure of inflation, is scheduled for release on Wednesday.
Technically, gold is attempting to break out of the key range after testing support. If a false break occurs at the 2634 level, a minor correction towards resistance may form.
Resistance levels: 2634, 2649, 2663
Support levels: 2618, 2607, 2600
If sellers hold the price below 2630-2634, the bearish momentum could strengthen. However, as the price is testing strong support, a significant reaction could form a false breakout and a correction, potentially targeting levels like 2649-2663 (fibo 0.5), before continuing the downtrend.
Gold prices dropped to their lowest level in a week during the Asian session on Tuesday, although spot prices found some support near the $2,600 mark.
Meanwhile, the prevalent risk-on environment, coupled with bets for slower Fed rate cuts and rising U.S. Treasury yields, is driving flows out of the safe-haven XAU/USD. Theoretically, any attempt to push gold prices higher may face limitations.
Ahead, the U.S. Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred measure of inflation, is scheduled for release on Wednesday.
Technically, gold is attempting to break out of the key range after testing support. If a false break occurs at the 2634 level, a minor correction towards resistance may form.
Resistance levels: 2634, 2649, 2663
Support levels: 2618, 2607, 2600
If sellers hold the price below 2630-2634, the bearish momentum could strengthen. However, as the price is testing strong support, a significant reaction could form a false breakout and a correction, potentially targeting levels like 2649-2663 (fibo 0.5), before continuing the downtrend.
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