Gold Breaks Below US$4,400, Selling Pressure Enters Fourth Week
Gold prices (XAU/USD) weakened sharply in recent trading, falling around 2% to US$4,391.64, extending the sell-off into a fourth week as the Middle East conflict re-elevated inflation concerns. At the same time, pressure in major economies to increase liquidity is said to have fueled the need to sell liquid assets, including gold, to cushion the impact of the war on financial conditions.
Today, gold opened at US$4,469.24, briefly rising to US$4,536.20, and then falling to US$4,319.92.
Last week, gold fell more than 10% as a surge in oil prices triggered a repricing of global monetary policy. The market began pricing in a longer easing pause, even the possibility of interest rate hikes, as energy inflation was seen as at risk of persisting and spreading to broader price pressures.
The gold price at the time of this analysis's release was at $4,391.
- Buy if the price moves to $4,386.
- Sell if the price moves to $4,396.
Resistance 2: $4,515.
Resistance 1: $4,453.
Support 1: $4,329.
Support 2: $4,267.
Note:
This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
