Gold prices ($XAU /USD) faced heavy selling pressure, sliding to a three-week low below $4,550 during early European trading ๐ฅ๐. The decline comes after strong profit-taking and major macro developments shaking market sentiment.
โก What Triggered the Drop?
๐น Reports confirmed Kevin Warsh as the next Federal Reserve Chair, easing concerns about the Fedโs independence ๐บ๐ธ๐ฆ
๐น Signs of improved political stability in the U.S. reduced safe-haven demand for gold
๐น Gold recently hit record highs, prompting traders to lock in profits ๐ฐ๐
๐ But Downside May Be Limitedโฆ
Despite the sell-off, several factors continue supporting goldโs long-term bullish outlook ๐
๐ฅ Ongoing U.S.โIran geopolitical tensions keep safe-haven demand alive
๐ฆ Strong and steady central bank gold accumulation worldwide
๐ต Weakening confidence in traditional reserve currencies boosts gold appeal
๐ Key Data & Market Drivers to Watch
๐ U.S. ISM Manufacturing PMI expected at 48.3
โก๏ธ A weaker-than-expected reading could weaken the U.S. Dollar and push gold higher ๐๐ฒโก๏ธ๐ฅ
๐ U.S. Producer Price Index (PPI) came in hotter than expected
โก๏ธ Rising inflation may encourage the Fed to keep interest rates steady โ ๏ธ
๐ Markets currently see an 87% chance rates stay at 3.50%โ3.75%, with possible rate cuts starting in June โณ๐
๐ Technical Outlook
โ Long-term trend remains bullish with gold holding above the 100-day EMA
โ ๏ธ Neutral RSI suggests possible short-term consolidation
๐ผ Bullish Targets:
๐ฏ $5,000 psychological resistance
๐ฏ $5,182 next major resistance
๐ฝ Support Levels:
๐ $4,620 initial support
๐ $4,513 next downside zone
๐ $4,275 key 100-day EMA support
๐ง Market Insight
Gold remains in a tug-of-war between profit-taking, monetary policy expectations, and global geopolitical risks โ๏ธ๐. While short-term volatility is rising, the broader trend still favors long-term strength.
Stay alert โ gold markets are entering a critical phase ๐จ๐
#XAU #XRPRealityCheck #XRPHACKED #GOLD_UPDATE
