Gold (XAU/USD) faces the risk of a deeper decline if the following factors continue to develop unfavorably for the precious metal:
📌 1. Continued Improvement in US-China Relations
• The joint statement between the US and China has eased trade tensions.
• If both sides announce more concrete agreements or actions (such as tariff reductions or market access), safe-haven demand may weaken significantly, leading to gold sell-offs.
📌 2. Sustained Strength in the US Dollar
• The USD is strengthening on expectations that the Fed will maintain higher interest rates for longer.
• Capital continues to flow into the USD rather than gold, especially as US bond yields rise.
📌 3. Lack of Supportive News for Gold
• Geopolitical risk factors have temporarily subsided.
• Inflationary pressure is no longer strong enough to support gold prices as before.
📉 Key Support Levels Ahead
If gold breaks below the $3,200 level, the next potential support zones include:
• $3,185 – a recent short-term low (if applicable)
• $3,160 – $3,170 – a technical support confluence zone
• $3,140 – a strong psychological support level, and a potential target if a sell-off intensifies
⚠️ Recommendation
• If gold decisively breaks below $3,200 with rising volume and continued positive developments in US-China trade, the downtrend could accelerate.
• Traders should monitor the $3,195–$3,200 range closely to assess whether to expand short positions.
📌 1. Continued Improvement in US-China Relations
• The joint statement between the US and China has eased trade tensions.
• If both sides announce more concrete agreements or actions (such as tariff reductions or market access), safe-haven demand may weaken significantly, leading to gold sell-offs.
📌 2. Sustained Strength in the US Dollar
• The USD is strengthening on expectations that the Fed will maintain higher interest rates for longer.
• Capital continues to flow into the USD rather than gold, especially as US bond yields rise.
📌 3. Lack of Supportive News for Gold
• Geopolitical risk factors have temporarily subsided.
• Inflationary pressure is no longer strong enough to support gold prices as before.
📉 Key Support Levels Ahead
If gold breaks below the $3,200 level, the next potential support zones include:
• $3,185 – a recent short-term low (if applicable)
• $3,160 – $3,170 – a technical support confluence zone
• $3,140 – a strong psychological support level, and a potential target if a sell-off intensifies
⚠️ Recommendation
• If gold decisively breaks below $3,200 with rising volume and continued positive developments in US-China trade, the downtrend could accelerate.
• Traders should monitor the $3,195–$3,200 range closely to assess whether to expand short positions.
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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.
Related publications
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.