Gold slides nearly 1% as US Dollar firms, geopolitics tensions de-escalate

💡 DMK Insight

Gold’s recent drop over 1% signals a shift in market sentiment that traders need to watch closely. After hitting a three-day high of $5,091, the retreat to around $4,901 suggests that bullish momentum is faltering, likely due to a stronger US Dollar and mixed market conditions. This could indicate that traders are reassessing their positions, especially as the dollar’s strength often inversely affects gold prices. If the dollar continues to gain traction, we might see XAU/USD testing lower support levels, potentially around $4,850. On the flip side, if gold can hold above $4,900, it might attract buyers looking for a dip. Keep an eye on the upcoming economic data releases that could further influence the dollar’s strength and gold’s trajectory. The next few days will be crucial for determining whether this is a temporary pullback or the start of a more significant downtrend.