XAUUSD: Selling pressure builds – Risk of drop aheadDear Traders,
Today, gold prices are fluctuating within the $2,910 - $2,922 range, showing no clear breakout or significant drop just yet. At first glance, the market appears quiet, but in reality, it's holding its breath, waiting for a major move.
What's driving this? The upcoming release of U.S. CPI & PPI data will be a crucial factor. If inflation continues to decline, the market may anticipate an early rate cut from the Fed, providing a bullish push for gold. However, if inflation remains high, the Fed might maintain elevated interest rates for longer—putting downward pressure on gold prices.
From a technical perspective, XAUUSD remains trapped in a long-term downtrend channel. Meanwhile, the Bollinger Bands are tightening, signaling a potential breakout. This makes the $2,922 level a critical resistance. If gold fails to break above this zone, a drop toward $2,900 – $2,880 is highly likely in the coming sessions.
In summary, gold is at a crucial turning point. A successful breakout above $2,922 could send prices toward $2,930. However, failure to do so may result in a sharp decline toward $2,880 or even lower.
Stay sharp and trade wisely!
