Gold is under pressure as the US dollar strengthensGold $TVC:XAU-AMEX:USD is under pressure as the US dollar strengthens and trade optimism spreads across the market. Prices slipped slightly early Wednesday as investors took profits after a rise from last week’s lows. Although US inflation came in lower than expected, the Fed’s lack of plans to cut interest rates anytime soon keeps gold OANDA:XAUUSD from gaining momentum. At the same time, optimism about new trade agreements between the US, China, the UK, and other countries, along with hopes for peace talks between Russia and Ukraine, are reducing demand for gold as a safe-haven asset.
Technically, the overall trend looks bearish. There’s no significant rebound from the support zone, indicating that selling pressure still dominates. Currently, prices are consolidating sideways before potentially testing the 3200 level.
Key resistance levels are at 3243, 3257, and 3269, while support is concentrated around 3222 and 3200.
If prices continue to fluctuate within the current range and test the 3222-3200 support zone, the downtrend is likely to persist in the short to medium term. However, it’s important to note that the market may create short-term “short squeezes” around resistance zones to challenge traders before prices fall further.
Wishing everyone successful and effective trading!
