GOLD’s Fundamental Update

XAUUSD Gold couldn’t hold above $4,200, and I think that’s the first warning sign for buyers. We’re seeing a second day of selling pressure, and unless something changes, the $4,100 area is becoming a realistic magnet.

The biggest driver right now is the stronger DXY U.S. Dollar. Geopolitical tensions heated up again after reports of missile attacks near the Strait of Hormuz, and whenever uncertainty returns, money naturally flows back into the Dollar.

On top of that, sentiment isn’t helping XAUUSD Gold either. Asian equities started the session weak, tech stocks were hit after Samsung’s earnings disappointed, and Nasdaq futures are pointing lower. To me, yesterday’s bounce still looks more like a relief move than the start of a real recovery.

The next big event is Wednesday’s FOMC Minutes. After weaker ISM Services PMI and NFP data, markets have become more confident that the Fed may eventually lean more dovish. Whether that expectation is justified or not will become much clearer once we hear what policymakers were actually discussing.