GOLD - Bear market. Trigger at 4,510
$XAU USD is under pressure again. The market is bearish. A false breakout of the trend resistance triggered a 3% drop on Friday; it will test key support. Friday’s session is closing on a weak note for the market...
The dollar has entered a bullish range. Momentum remains intact. The market is pricing in interest rate hikes; a new batch of “hot” economic data could support the index’s growth. The nearest catalysts are the release of the minutes from the Fed’s May meeting on May 20 and PCE data on May 28. Escalating geopolitical tensions will push the dollar even higher, intensifying pressure on gold.
Technically, gold is under pressure. The market is testing 4510; a close below this support level will open a new range of 450–4400 (4350). A close below 4510 could become a technical driver for the continuation of the decline
Resistance levels: 4588, 4607, 4646
Support levels: 4510, 4400, 4350
From the opening of the session, the market may form a local pullback aimed at liquidity hunting. As part of the correction, gold may test the resistance zone of 4588–4607 or the upper boundary of the range at 4646 before continuing its decline. A breakdown, close, and consolidation below 4510 could trigger a continuation of the decline.
