Highlights
US dollar strengthens, gold prices fall; China’s economy impacts global markets; investors await US retail sales statistics.

Overview
Because of the strengthening of the U.S. currency brought on by rising bond yields and worries about the Chinese economy, gold prices have decreased. The dollar and Treasury yields were the main determinants of spot gold’s performance, as well as U.S. gold futures’ decreases. The strengthening currency and rising yields are related to rumours about the financial and real estate dangers facing Chinese regulators. Investors are currently looking for additional clarity in the upcoming retail sales data and Federal Reserve policy meeting information.

Weak Short-Term Forecast
Gold is anticipated to continue to be under pressure in the near future. The appeal of gold appears to be decreasing as a result of the U.S. dollar’s continued strength and lingering concerns about China’s economy. The world’s leading gold-backed ETF, SPDR Gold Trust, which recently announced a decrease in holdings to its lowest level since the beginning of 2020, echoes this attitude as well.

Technical analysis
The price of gold (XAU/USD) is currently 1905.03, which is a small decrease from 1906.66. When the 200-4H moving average is below 1940.50, it may be considered to be bearish. The price of the commodity is under its 50-4H moving average of 1963.27, supporting a negative view. The market is getting close to being oversold, but there is still room for extreme levels, according to the 14-4H RSI, which is 33.20. The price is above the key range of support and resistance, indicating a short-term bearish view for the XAU/USD market.


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