GOLD → One final step remains before a drop. The target is 2587.Hello, dear friends! Let’s discuss and strategize today's gold trading opportunities with Ben!
As predicted yesterday, gold prices dropped to $2,608, delivering a profit of approximately 200 pips. This decline was driven by pressure from Wall Street’s underperformance, which bolstered the strength of the US Dollar and Treasury yields. Investors are now eagerly awaiting clearer signals about the Federal Reserve’s monetary policy for 2025.
In reaction to these developments, the US Dollar Index rose by 0.4%, hovering near its highest level in over two years. This diminished gold's appeal for holders of other currencies. Additionally, the yield on 10-year US Treasury bonds increased, adding further weight to gold prices.
Looking ahead, the market remains focused on the outcomes of last week's Federal Open Market Committee (FOMC) meeting. A more gradual rate hike trajectory for 2025 is currently under discussion, with speculation that the Federal Reserve may pause interest rate changes in January or March.
From a theoretical perspective, in the face of a strong US Dollar, gold has limited upside potential. If sellers maintain resistance below $2,620 and push to break the support level, the pair could target $2,587 in the medium term.
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