Gold Slides Below $2,000 as Market Eyes Fed's Interest Rate Call
Spot gold extended its decline on Monday, slipping below the $2,000 threshold and approaching the $1,980 range as the market gears up for fresh inflation data with the release of the US Consumer Price Index on Tuesday.
XAU/USD faced significant losses for the second consecutive day, indicating potential for further decline. Technical indicators on the daily chart reflect strong selling pressure as the pair broke below the 20-day Simple Moving Average (SMA), although this line is still maintaining an upward slope. Longer-term SMAs show significantly lower directional strength, establishing a target range between $1,930 and $1,950. Finally, the technical indicators are trending downwards, crossing into negative territory, aligning with lower lows.
Looking ahead on the 4-hour chart, the downside risks persist. XAU/USD accelerates its descent after breaking below the flat 200-day SMA, while the 20-day SMA crosses below the 100-day SMA above the larger SMA, indicating increasing selling pressure. Meanwhile, technical indicators are moving south around oversold levels without showing signs of easing.
Gold reached a low of $1,976.26 on November 20, a breaking point to confirm the continuation of the
XAU/USD faced significant losses for the second consecutive day, indicating potential for further decline. Technical indicators on the daily chart reflect strong selling pressure as the pair broke below the 20-day Simple Moving Average (SMA), although this line is still maintaining an upward slope. Longer-term SMAs show significantly lower directional strength, establishing a target range between $1,930 and $1,950. Finally, the technical indicators are trending downwards, crossing into negative territory, aligning with lower lows.
Looking ahead on the 4-hour chart, the downside risks persist. XAU/USD accelerates its descent after breaking below the flat 200-day SMA, while the 20-day SMA crosses below the 100-day SMA above the larger SMA, indicating increasing selling pressure. Meanwhile, technical indicators are moving south around oversold levels without showing signs of easing.
Gold reached a low of $1,976.26 on November 20, a breaking point to confirm the continuation of the
