GOLD - The market may move towards consolidation...

XAUUSD is testing 4686, but by the end of Friday's session, traders are buying back the drop to 4800. The market may enter a consolidation phase until the fundamental situation stabilizes.



The reasons for the decline may include a change in the Fed's rhetoric due to the nomination of a new head of the regulator, Kevin Warsh, who is likely to adopt a more hawkish monetary policy. In addition, the growth of the dollar was also driven by hot inflation data. Traders reacted quite aggressively to the situation and moved to aggressively lock in profits.
In the new trading week, we are awaiting PMI, JOLTS, and ISM PMI data, as well as perhaps the most important economic index, NFP.
Technically, it is too early to talk about a clear market direction, as the situation has not yet stabilized. Accordingly, at the moment, I expect that the market may move towards consolidation after such a sharp decline. The approximate boundaries within which the price may stop are 4650 - 4950 (5000).

Support levels: 4800, 4686, 4643
Resistance levels: 4944, 4990, 5000

The Asian market may test resistance, but if bears keep the market below 5000, gold may form a correction to 4800 - 4686 due to the floating fundamental background.

Best regards, R. Linda!