Gold slides as Warsh Fed pick, hot ISM data extends bullion unwind

💡 DMK Insight

Gold’s 4% drop signals a shift in market sentiment following Trump’s Fed pick. The announcement has implications for interest rates and inflation expectations, which are crucial for gold traders. As manufacturing activity shows improvement, the likelihood of tighter monetary policy increases, making gold less attractive as a hedge. Traders should watch for resistance around recent highs, as any further bullish economic data could push prices lower. On the flip side, if geopolitical tensions rise or economic data falters, gold could rebound sharply. Keep an eye on the $1,800 level; a break below could trigger further selling pressure, while a bounce could signal a buying opportunity for those looking to capitalize on volatility.