Has gold established a long-term downtrend yet?

The US Dollar Index is entering accumulation and recovering after 2 days of decline, making gold priced in US Dollars less attractive thanks to direct correlation. The short-term appeal of precious metals still remains. weak as tensions in the Middle East ease and safe-haven demand weakens. The gold market has been less affected by the escalating conflict in the Middle East as developments have cooled down. What the market is interested in as well as the current trading question is whether this correction in gold prices will create a long-term downtrend, or simply a short-term decline.

First-quarter GDP and core inflation will provide further gauge on when the Federal Reserve (Fed) will begin cutting interest rates. US gross domestic product (GDP) data will is released on (today) Thursday and the personal consumption expenditures (PCE) report will be released on Friday. Currently, traders expect the Fed to cut interest rates starting from the meeting September. Further signs of sustained price pressure will allow the Fed to maintain its stance of keeping interest rates at current levels over the long term. Theoretically, this scenario bodes well for the US dollar and US bond yields, while reducing the appeal of non-yielding gold.

Gold has been trading in the 2310-2330 range for the past two days. A liquidity sweep to 2305 this morning pushed the price back up around the important resistance area of 2330. DXY is at the important support area of 105.6 This is also a condition for gold to increase in price when this support zone of DXY is relatively weak. Maybe the price range and main market trend will change slightly after GBP tonight.


Support: 2,305 – 2,268 USD
Resistance: 2,332 – 2,365USD

Comment:

Gold has broken the trend and is trading above 234x. The trend has reversed to increase

Trade closed: stop reached