XAU/USD Price Analysis: Will Gold Continue to Slide as Markets Stabilize?
- Financial markets seek stability amidst lingering fears.
- US Dollar gains strength as government bond yields recover.
- XAU/USD extends losses, targets lower levels within Monday’s range.
XAU/USD is currently trading at $2,388.23, continuing its slide from Monday’s levels as market sentiment shifts away from panic. The recent recovery in stock markets, especially in the US, has weakened demand for Gold as investors turn towards riskier assets.
Meanwhile, the rise in government bond yields, particularly the 10-year Treasury note yield, has supported the US Dollar’s uptrend, putting further pressure on Gold prices. Despite the apparent stabilization in financial markets, concerns about the US economy persist, leading to expectations of interest rate cuts in the near future.
XAU/USD Technical Analysis
XAU/USD is currently hovering around the 50% Fibonacci retracement level at $2,388.70, indicating a bearish bias in the short term. The pair found support near the 38.2% retracement level at $2,411.20, but technical indicators suggest a potential downward continuation.
On the 4-hour chart, the bearish momentum is even more pronounced, with technical indicators pointing towards further downside movement. The 20 SMA is trending downwards, while XAU/USD struggles to break above the 200 SMA, indicating a bearish outlook.
Support Levels: $2,372.90, $2,366.00, $2,352.40
Resistance Levels: $2,411.20, $2,424.10, $2,438.80
Analysis:
With financial markets looking to stabilize and fears easing, the US Dollar is gaining strength against Gold. Investors are closely monitoring government bond yields and the overall economic health of the US, which could impact future interest rate decisions. Traders should pay attention to support and resistance levels in XAU/USD for potential trading opportunities in the coming days.