Why is gold falling hard? Will gold test $1950/1900.
Why is gold dropping hard?
There are only two reasons that are playing behind the gold's drop.
1. Ukraine's president says they are no longer to join NATO.
2. Profit-taking purposes.
Both two matters are playing behind the gold's drop and happening at the same time.
Because if Zelonasky doesn't join NATO, Russia may stop the war. No war favorable market conditions push the investor for profit-taking.
And, of course, gold dropped from its all-time high price. It is normal. Even I shared an analysis last week that gold will drop from $2075, which happens. It is widespread. Every asset will have profit taken from solid support and resistance. And all-time high and all-time low is enormous support and resistance.
Gold has dropped almost 1100 pips from its all-time high price zone. Gold is currently hovering near trend line support. Somehow if this minor trendline support breaks out, it will go straight to $1950. $1970 is the trendline support zone from the present perception, which means that if 1the gold breaks below 1979t, our first target would be 1950.
In my opinion, gold may not break $1950 in one chance. I think XAU/USD will pull back from around $1950 because around $1950 is the Major Trendline Support Area. But if for some reason 1950 breaks out, it will only go to the 1900/1890 prize.
Today we have a CPI report. So, if CPI drops, XAU/USD may bounce to $2000/2020. I think, $2000 or $2020 should be another good place to sell if the CPI drop. If CPI prints positive, there are no ways gold has the most possibility to test $1950.
There are only two reasons that are playing behind the gold's drop.
1. Ukraine's president says they are no longer to join NATO.
2. Profit-taking purposes.
Both two matters are playing behind the gold's drop and happening at the same time.
Because if Zelonasky doesn't join NATO, Russia may stop the war. No war favorable market conditions push the investor for profit-taking.
And, of course, gold dropped from its all-time high price. It is normal. Even I shared an analysis last week that gold will drop from $2075, which happens. It is widespread. Every asset will have profit taken from solid support and resistance. And all-time high and all-time low is enormous support and resistance.
Gold has dropped almost 1100 pips from its all-time high price zone. Gold is currently hovering near trend line support. Somehow if this minor trendline support breaks out, it will go straight to $1950. $1970 is the trendline support zone from the present perception, which means that if 1the gold breaks below 1979t, our first target would be 1950.
In my opinion, gold may not break $1950 in one chance. I think XAU/USD will pull back from around $1950 because around $1950 is the Major Trendline Support Area. But if for some reason 1950 breaks out, it will only go to the 1900/1890 prize.
Today we have a CPI report. So, if CPI drops, XAU/USD may bounce to $2000/2020. I think, $2000 or $2020 should be another good place to sell if the CPI drop. If CPI prints positive, there are no ways gold has the most possibility to test $1950.
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