The Price of Gold XAU/USD Shows Strongest Fall in Almost 2 Years


On Monday, the price of gold fell from USD 2,386 to USD 2,333 per ounce — this is the strongest drop in one day in almost 2 years, according to Bloomberg. On Tuesday morning in the Asian session, the price continued to decline, reaching USD 2,300 per ounce.

This happened against the backdrop of:

→ easing tensions in the Middle East. According to Tehran's official statement, Israel received "the necessary response at this stage."

→ signs that the Federal Reserve will keep rates high for longer.

One of the reasons for the intensification of sales can also be considered the desire to take profits by those who held long positions — we wrote about this in the post “The price of gold XAU/USD has reached an important resistance zone” on April 16.

Nevertheless, the gold market continues to remain in an upward trend — since the beginning of the year, its price has increased by 11.5%.

Technical analysis of the XAU/USD chart shows that:

→ the price of gold has reached the median line of the ascending channel (shown in blue), which has been in effect since the beginning of the year;

→ the indicated median line is located in the area of the psychological mark of USD 2300 per ounce — so this area can support the price of gold today.

It is possible that the bulls will try to win back at least 50% of the fall, raising the price to USD 2,350. How successful they will be will depend, among other things, on the fundamental data background. On Friday at 15:30 GMT+3 the values of the Core PCE Price Index will be published — an indicator that the Federal Reserve pays special attention to when analyzing current inflation in the United States.

Start trading commodity CFDs 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

WTI Crude Oil Price Shows Bullish Trend Ahead of OPEC Meeting Can Last Week's Gold Price Rally Be Replicated? Gold Price Drops Over 3.6% in 2 Days Market Analysis: Gold Price and Crude Oil Price Signal Bearish Acceleration Gold Price Reaches Historic High

Latest articles

Forex Analysis

GBP/JPY at Highest Level in Over 15 Years

As shown by today's GBP/JPY chart, the exchange rate has not only surpassed the psychological level of 200 yen per pound but has also exceeded the peak of 29 April 2024. The market is now experiencing prices last seen


Elon Musk Contributes to NVDA Price Surge to a New Record

Yesterday, on Tuesday, Nvidia's stock price reached a historic high, surpassing the $1,130 mark, increasing by almost 7% relative to Monday's closing price. This happened after a turbulent past week, during which Nvidia published a very strong report that

What Is a Falling Knife in Trading?
Trader’s Tools

What Is a Falling Knife in Trading?

It’s often repeated that traders should ‘never catch a falling knife.’ This phrase highlights the risks of buying into a rapidly declining asset. Understanding what a falling knife is, its causes, and strategies for trading it may help traders

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.