Gold Price Forecast: XAU/USD hovers below $5,000, recent recovery losses steam

💡 DMK Insight

Gold’s recent drop from $5,100 to $4,865 is raising eyebrows, especially with the dollar gaining strength. Typically, gold shines in risk-averse environments, but the current dynamics suggest traders are favoring the dollar instead. The fact that gold is struggling to hold above $4,790 indicates a potential bearish trend, and if this level breaks, we could see further declines. Watch for any significant moves in the dollar index, as a continued appreciation could further pressure gold prices. Also, keep an eye on broader economic indicators like inflation data or Fed announcements, which could shift sentiment back towards gold. On the flip side, if gold manages to reclaim the $4,900 level, it might signal a short-term reversal, but until then, the bearish sentiment seems to be prevailing. Traders should be cautious and consider short positions if the $4,790 support fails.