Gold Slips from Record Levels as Dollar Strengthens
Gold prices (XAU/USD) weakened in Tuesday's trading after a strong rally, dragged down by a strengthening US dollar and rising Treasury yields. Risk-off sentiment began to ease as optimism emerged that US government budget negotiations would soon reach a resolution, reducing demand for safe-haven assets. Furthermore, some market participants also began taking profits after gold prices briefly reached a record high above $3,900 per ounce earlier in the week.
Nevertheless, the medium-term outlook for gold remains positive. Expectations that the Federal Reserve will cut interest rates soon remain a key supporting factor, coupled with persistently high global geopolitical tensions. However, as long as the US dollar remains strong and bond yields continue to rise, corrective pressure on gold has the potential to continue in the short term.
At the time of writing, the gold price is at $3,956.
- Buy if the price moves within the $3,963 range.
- Sell if the price moves within the $3,949 range.
Resistance 2: $3,978
Resistance 1: $3,971
Support 1: $3,941
Support 2: $3,934
Disclaimer:
This article is analytical in nature and is not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
