Commodities Analysis by Fawad Razaqzada covering: XAU/USD, Gold Futures, US Dollar Index. Read Fawad Razaqzada's latest article on Investing.com
Gold's recent record highs were followed by a sharp decline, raising concerns about a peak.Key economic events this week will be crucial in determining gold's future direction.'s recent performance has caught the attention of many investors. The precious metal hit a record high last week but then plunged to close lower.
However, as highlighted in the chart, gold has exhibited similar bearish weekly price actions several times since Q4 2023. In most cases, there has been only modest downside follow-through, with some candles completely engulfed by the next week's price action, indicating no real control by the bears.On the daily timeframe, gold has reached potential support between $2385 and $2400, where prior resistance meets the 21-day exponential moving average .
In terms of potential resistance, the $2450 level is crucial as gold peaked there in May and failed to hold above it last week. For gold, signs of persistent inflation are not necessarily bad, as investors often turn to gold to hedge against rising prices. If inflation is weaker than expected, gold may benefit from a corresponding drop in the US dollar. Thus, inflation data is unlikely to threaten gold's bullish trend.Gold's recent drop may appear concerning, but historical patterns suggest it could be another bear trap.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Silver: Bullish Consolidation Shouldn't Be Taken as a Sign of WeaknessCommodities Analysis by Fawad Razaqzada covering: Gold Futures, Silver Futures, US Dollar Index. Read Fawad Razaqzada's latest article on Investing.com
Read more »
Gold: New ATH Likely as Fundamental Tailwinds Drive Bull Flag BreakoutCommodities Analysis by Fawad Razaqzada covering: XAU/USD, US Dollar Index Futures, Gold Futures. Read Fawad Razaqzada's latest article on Investing.com
Read more »
EUR/USD Eyes 1.10 as Path of Least Resistance Remains to the Upside Ahead of ECBForex Analysis by Fawad Razaqzada covering: EUR/USD, US Dollar Index Futures. Read Fawad Razaqzada's latest article on Investing.com
Read more »
Silver Sets Stage for Rally to $35 - Today's Dip a Great Buying OpportunityCommodities Analysis by Fawad Razaqzada covering: XAG/USD, Silver Futures. Read Fawad Razaqzada's latest article on Investing.com
Read more »
GBP/USD Eyes 1.3 Handle With US CPI on Tap - Key Entry, Exit Levels to MonitorForex Analysis by Fawad Razaqzada covering: GBP/USD, US Dollar Index Futures. Read Fawad Razaqzada's latest article on Investing.com
Read more »
GBP/USD: Pivotal Week to Spark Trading Opportunities With UK Elections LoomingForex Analysis by Fawad Razaqzada covering: EUR/USD, GBP/USD, USD/JPY, FTSE 100. Read Fawad Razaqzada's latest article on Investing.com
Read more »