XAU/USD Analysis: Gold Price Drops to $2,600 per Ounce
On November 4, when gold was trading around $2,750, we observed bearish signals on the XAU/USD chart.
Since then, the price has declined to the $2,600 level, briefly dipping below it the lowest price since mid-September.
According to Trading Economics, investors may be losing interest in gold for several reasons:
Strong U.S. Dollar: A robust dollar reduces gold's appeal as a safe-haven asset.
Optimism Following Trumps Election: Market participants are reacting to Trumps fiscal and monetary policy pledges, shifting toward riskier assets.
Upcoming Key U.S. Inflation Data: The CPI data, expected today at 16:30 GMT+3, may reveal no unexpected negative trends.
Todays XAU/USD technical analysis shows that:
Golds price is at the lower boundary of the blue channel, which has been extended to reflect recent trading data.
The channels median line has shifted from support to resistance (shown with arrows).
It is possible that todays inflation news may catalyse one of two scenarios on the XAU/USD chart:
Bullish Rebound: Buyers may attempt to resume an uptrend from the lower boundary of the blue channel, facing resistance around $2,655.
Bearish Control: Sellers may continue to dominate, potentially making the blue channel less relevant as price stabilises below $2,600.
Read more: https://fxopen.com/blog/en/oa-xau-usd-analysis-gold-price-drops-to-2-600-per-ounce/
Text source: Forex Trading Blog
