Gold Corrects, Market Still Pricing Energy Inflation Risk
Gold prices (XAU/USD) fell to around 4,851 on the Active Trader feed on TradingView, indicating that selling pressure remains dominant after a period of high volatility over the past few days. This movement occurred as the market reasserted the US dollar as its primary anchor, while investors continued to weigh the combination of geopolitical risks and energy inflation risks.
Gold's decline primarily reflected a classic trade-off: safe-haven demand exists, but the USD and yields act as stronger brakes. When the dollar strengthens and US yields remain high, non-yielding gold typically loses appeal as opportunity costs rise and prices become more expensive for non-USD buyers. During certain risk-off periods, defensive flows also flow into dollar liquidity rather than gold, allowing gold to weaken even when geopolitical headlines remain hot.
The gold price at the time of this analysis's release was at $4,848.
- Buy if the price moves below $4,840.
- Sell if the price moves below $4,855.
Resistance 2: $4,875.
Resistance 1: $4,865.
Support 1: $4,835.
Support 2: $4,825.
Note: This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on your trading before making any investment decisions.
Source: Newsmaker.id
