Gold opened today’s session with continued selling pressure from Asian investors, right after showing a slight uptick.
This movement indicates that gold prices are currently under significant pressure as capital continues to flow into the crypto market, with Bitcoin and various ALTCOINS surging sharply over the past two days.
The expectation that the FED will cut interest rates remains above 89%, indicating that the market is optimistic about the possibility that the FED will continue reducing rates to support the labor market.
Therefore, gold prices may experience slight declines, but the medium- to long-term trend is still expected to rise strongly, and the current pressure mainly comes from capital flowing into the crypto market.
Tonight, the unemployment claims data will be released, serving as an important indicator to provide further signals on whether the FED will truly need to cut interest rates to support the economy. This data will also help determine gold’s short-term direction — either moving up toward 43xx$/ounce or dropping back to the 4000$/ounce range.
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