Yesterday, Gold suffered a strong sell-off during the U.S. session, dropping 100 points from 4245 to the 4145$/ounce area.
The sell-off was triggered by the U.S. government confirming its reopening after 43 days of shutdown. Economic data also showed that the U.S. economy has not weakened enough to justify further rate cuts in December.
Therefore, the entire market faced strong selling pressure, not only precious metals but also stocks and cryptocurrencies turned sharply lower.
However, Gold managed to hold the 4145$ level and rebounded to the 419x–4200 zone this morning.
Thus, Gold is likely experiencing a strong profit-taking phase to establish solid support before rising again, especially as lower interest rates tend to benefit Gold.
Technical Analysis:
In the short to medium term, if Gold continues to hold the 4145$/ounce support zone, the bullish trend will remain intact and Gold may move back to the previous peak at 438x$/ounce.
If Gold fails to maintain the 4145$ support and breaks below it, a deep correction toward 405x$/ounce—or even further to the 39xx range—may occur.
Trí Hùng
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