After hitting a new peak at 3707$/ounce when the FED decided to cut interest rates, Gold is starting to show signs of a trend reversal and a sharp decline.
In just 2 days, Gold has dropped 80 points to the 3627$/ounce area, and the downtrend is continuing as the strong support zone at 363x has been broken.
The reason is believed to be due to tariff pressures and the risk of the FED losing its independence. The market is betting on buying USD reserves while simultaneously short-selling the USD through derivatives to hedge against currency depreciation risks. This has caused capital to start flowing out of Gold, creating short-term pressure on its price.
Therefore, Gold may be at a “saturation point,” and investors are beginning to take some profits. The long-term trend for Gold remains bullish, but in the short term, there is a high probability of a strong correction that could drive prices below 3500 before rebounding again towards the end of 2025.
Technical analysis:
In the short term, Gold prices are showing signs of a sharp decline towards the 3600$/ounce area => Prioritize SELL setups.
Potential SELL zones:
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Sell 3646 – 3649
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Sell when price touches EMA50 around 3654 – 3656
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