Market Analysis: The Price of Gold Drops Below $1,900


The decline in the price of the asset considered a safe haven was facilitated by rising bond yields, which are becoming more attractive for investment in a high-interest environment. According to top Federal Reserve officials, new increases are possible to achieve inflation targets.

At yesterday's low, the price fell below 1,860 per ounce for the first time since March 2023. Will the fall continue? The XAU/USD chart on the 4-hour time frame provides valuable information for thought.

Bearish arguments:
→ Falling tops above the 1,900 level, which formed during August-September, indicate a steady decline in demand.
→ The price is within the local downward channel (shown in red), its upper limit can serve as resistance for recovery and/or a factor for the formation of a new downward impulse.
→ After breaking through the 1,900 level, the price accelerated its decline, which indicates the bears’ confidence.

Bullish arguments:
→ The price has reached the lower border of the channel shown in yellow. This line may provide support, which is already noticeable by the price rebound from yesterday’s low and the positive dynamics in the Asian session today.
→ At the low of the day yesterday, large volumes of trading in gold futures took place on the CME, which may indicate the interest of large players in buying out short positions or even establishing long positions for long-term portfolios.

Start trading commodities with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Commodities

Market Analysis: Natural Gas Prices Fall to More than 2-month Lows Market Analysis: Gold Price Dips From $2K While Crude Oil Price Recovers Market Analysis: The Price of WTI Oil Forming a Reversal Pattern Brent Crude Surges to $82.51 Amid OPEC+ Anticipation Market Analysis: Citi Analysts Expect Brent to Reach $73 in 2024

Latest articles

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Falls to Its Lowest Level Since Mid-August

EUR/USDThe euro strengthened on Monday as the dollar fell on expectations that the Federal Reserve will not raise rates again. Traders this week will have to weigh data on how the US economy performed in the third quarter, as


NASDAQ Composite Index Heralds a Fine Time for Tech Stocks

In the ever-fluctuating landscape of financial markets, the NASDAQ exchange, home to some of the world's most prominent technology stocks, has been a bastion of volatility over the past two years. This week, the NASDAQ index continues its upward trajectory,

Trader’s Tools

Fibonacci Retracement Strategies

Fibonacci retracements are a cornerstone in the toolkit of many traders, offering a mathematical approach to identifying potential areas where reversals may occur. This article delves into the intricacies of using Fibonacci retracements, covering everything from basic understanding to strategies

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.