Gold Spot / U.S. Dollar
Short
Updated

XAUUSD – The Weakness of Gold – Are Investors Ready?

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Gold is being heavily impacted by the strengthening of the US dollar, driven by recently released economic data from the US. A strong increase in employment and a 2.5% GDP growth show that the US economy is growing stronger than expected, pushing the US dollar higher and creating downward pressure on gold.

The chart shows that gold is trading within a downward price channel, with key support and resistance levels already identified. The strong resistance at 3,345 USD continues to be a major challenge for any upward movement in gold.

If gold cannot break through these resistance levels and continues to decline below 3,310 USD, we may see a deeper correction.
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