Gold weakens as upbeat US Services PMI offsets soft labour signals

💡 DMK Insight

Gold’s struggle near the $4,500 mark is a critical moment for traders. The recent selling pressure indicates that profit-taking is kicking in after a strong rally. This could signal a potential reversal or at least a consolidation phase. Traders should be cautious, as a sustained drop below this psychological level could trigger further selling, especially if it coincides with broader market volatility or shifts in interest rates. Keep an eye on the daily chart for signs of a bearish trend developing, particularly if we see a close below $4,450. On the flip side, if gold can reclaim the $4,500 level decisively, it might attract fresh buying interest, pushing it higher. Watch for any economic data releases that could impact market sentiment, especially those related to inflation or monetary policy, as these could influence gold’s trajectory significantly.