Gold Spot / U.S. Dollar
Short
Updated

XAUUSD – Gold may plunge if key support fails

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Hello traders! Gold continues to move within a clear descending channel and is currently retesting the previous support zone around 3,295.600. The RSI remains weak, and the EMA 34 stays below the EMA 89, confirming that the bearish trend is still dominant.

On the news front, U.S. labor costs have exceeded expectations, the Fed held rates steady, and there’s no sign of a dovish shift. This continues to strengthen the USD and puts pressure on gold. Investors are now awaiting Powell’s speech at tonight’s FOMC meeting—if his tone remains hawkish, gold is likely to face further downside.

Trading strategy:
If price retraces to the 3,350 – 3,371 zone and shows rejection or reversal signals, SELL remains the preferred option.
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