Subwave 4 not completed?Strong recovery in global economies along with geopolitical stability may reduce gold's demand. Lastly, increasing interest in alternative assets, (like cryptocurrencies or other commodities) could lead to a decline in gold's perceived value.
When interest rates rise, gold demand may fall. This relationship becomes particularly important during periods of high inflation. If rates lag behind inflation, creating negative real interest rates, gold often benefits as investors seek to preserve purchasing power.
Higher interest rates and a stronger dollar make gold less attractive since the yellow metal doesn't generate ongoing income like interest or dividends. Growing optimism in the stock markets has also triggered outflows from gold ETFs, increasing selling pressure on the gold market.
Gold prices fell over 1% on Friday as the dollar held close to two-week highs after U.S. inflation data came in line with expectations, suggesting the Federal Reserve may adopt a cautious stance on additional rate cuts. Today, a strong pullback reach 2914 resistance area, by reaction to 200 Moving average support. We might be doing a Flag and pole pattern, and TP is about 4 hour order block. There we can complete subway 4.
