Gold Prices Rebound but Bearish Trend Dominates
Gold prices extended their recovery momentum on Wednesday, gaining over 70 pips during the early session and hovering around $2,639.
While the precious metal shows signs of short-term strength, the broader trend remains favorable for sellers. Gold’s recent rally stems from a weakening U.S. dollar, as investors took profits following last week’s sharp dollar gains. Since gold is dollar-denominated, a weaker dollar makes it more attractive to buyers using other currencies.
Geopolitical tensions also continue to provide support, with the next target set at the $2,665 resistance level. Should gold breach this level, further recovery may follow. However, if resistance holds, the primary bearish trend suggests prioritizing selling opportunities.
While the precious metal shows signs of short-term strength, the broader trend remains favorable for sellers. Gold’s recent rally stems from a weakening U.S. dollar, as investors took profits following last week’s sharp dollar gains. Since gold is dollar-denominated, a weaker dollar makes it more attractive to buyers using other currencies.
Geopolitical tensions also continue to provide support, with the next target set at the $2,665 resistance level. Should gold breach this level, further recovery may follow. However, if resistance holds, the primary bearish trend suggests prioritizing selling opportunities.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.