Break key support. Initially forming the dowtrend

During the Asian session on Monday spot gold had a GAP and opened lower, falling to a low of $2,360/ounce. Gold is mainly under pressure because tensions around Israel and Iran seem to have cooled down, which reduces risk aversion, thus putting pressure on gold prices. There are no new points in the developments. geopolitical conflict, all attacks are just in the media. There are no new points and no risk of escalation. Gold will be under selling pressure because it is considered a safe haven asset during market periods with many risks and especially geopolitical risks.

The US Bureau of Economic Analysis will release first-quarter gross domestic product (GDP) data. If US GDP data is stronger than expected, the US Dollar could hold its ground and put pressure on gold. Surveys show the initial quarterly real GDP rate in the US in the first quarter is expected is expected to increase by 2.1%. There is a less than 20% chance that the Fed will cut its policy rate by 25 basis points in June.
On Friday, the US will release data on the personal consumption expenditures (PCE) price index for March, the Fed's preferred measure of inflation.

On the daily chart, after gold dropped significantly this morning it broke the technical support level of 2,375, 2360. Currently the bearish margin is expanding and extending to the support area of 2328, 2315. With trading below the important resistance zone below the 2380 trendline, the price decline is covering the whole market. There could be a retest to 2375 or 2380 before the bears swallow the bulls.

Resistance: 2400 -2413 - 2428
Support: 2354 - 2330 - 2322

Comment:

As analyzed, gold fell into the Dowtrend and only reacted slightly at the support zones

Trade closed: target reached