Gold Prices Drop Under Pressure From US Economic Data
Updated
On the 4-hour chart, gold prices have just experienced a sharp decline, currently trading around $2,602/ounce, after falling sharply from a recent high of $2,659/ounce. This weakness comes from the stronger-than-expected US retail sales data, reaching 0.7%, increasing the possibility of the Fed delaying its interest rate cut plan.
Currently, gold prices have fallen deeply below both the 34-EMA and 89-EMA, indicating that the short-term downtrend is dominant. The nearest important support zone is located at $2,580, and if this level is broken, the price may continue to decline to the $2,550 area. On the contrary, the current important resistance zone at $2,620 will need to be overcome to create recovery momentum.
I believe that gold prices will continue to face downward pressure in the short term, with the possibility of testing the support zone of $2,580. However, the upcoming FED meeting will play an important role in determining the long-term trend. Investors should carefully monitor the signals from the market.
Currently, gold prices have fallen deeply below both the 34-EMA and 89-EMA, indicating that the short-term downtrend is dominant. The nearest important support zone is located at $2,580, and if this level is broken, the price may continue to decline to the $2,550 area. On the contrary, the current important resistance zone at $2,620 will need to be overcome to create recovery momentum.
I believe that gold prices will continue to face downward pressure in the short term, with the possibility of testing the support zone of $2,580. However, the upcoming FED meeting will play an important role in determining the long-term trend. Investors should carefully monitor the signals from the market.
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