GOLD LOSES ITS SHINE - DISTRIBUTION PHASE BEGINS

May 2

Symbol - XAUUSD

CMP - 3244

Gold breaks below 3270, entering a distribution phase amid a strengthening US dollar. The market appears to be in the early stages of a potential trend reversal.

On Thursday, gold remained under sustained pressure, trading at a two-week low, as market sentiment responded to statements by President Trump regarding potential trade agreements with multiple countries, including China. Growing optimism surrounding trade negotiations is enhancing risk appetite, thereby diminishing demand for gold as a traditional safe-haven asset. Notably, even weak US GDP and inflation figures failed to support gold prices, as investor focus remains firmly on trade developments and upcoming labor market data.

Gold's price trajectory is shifting due to the strengthening of the dollar and evolving macroeconomic fundamentals. A break below the recent local low could further reinforce the downward momentum. The initial downside target is set at 3190. A potential retest of the previously breached consolidation support at 3268 may occur before the downward movement resumes.

Resistance levels: 3245, 3270
Support levels: 3190, 3186, 3167

A break below the local low of 3221 could act as a catalyst for a deeper decline, with 3190 as the initial target. A retest of the 3245–3270 resistance range cannot be ruled out prior to the continuation of the downtrend.

May 2

Trade active

CMP 3270

Short position initiated.

May 5

Trade closed manually

Gold fell to 3226 before reversing, Short position closed with trailing SL at 3245

$25 move captured.