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On November 4, when gold was trading around $2,750, we observed bearish signals on the XAU/USD chart.
Since then, the price has declined to the $2,600 level, briefly dipping below it — the lowest price since mid-September.
According to Trading Economics, investors may be losing interest in gold for several reasons:
→ Strong U.S. Dollar: A robust dollar reduces gold's appeal as a safe-haven asset.
→ Optimism Following Trump’s Election: Market participants are reacting to Trump’s fiscal and monetary policy pledges, shifting toward riskier assets.
→ Upcoming Key U.S. Inflation Data: The CPI data, expected today at 16:30 GMT+3, may reveal no unexpected negative trends.
Today’s XAU/USD technical analysis shows that:
→ Gold’s price is at the lower boundary of the blue channel, which has been extended to reflect recent trading data.
→ The channel’s median line has shifted from support to resistance (shown with arrows).
It is possible that today’s inflation news may catalyse one of two scenarios on the XAU/USD chart:
→ Bullish Rebound: Buyers may attempt to resume an uptrend from the lower boundary of the blue channel, facing resistance around $2,655.
→ Bearish Control: Sellers may continue to dominate, potentially making the blue channel less relevant as price stabilises below $2,600.
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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.
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