On the other hand, the US dollar was strengthened after the Federal Reserve signal not to implement immediate cuts in the rates. This upward position drove the dollar to reach a maximum of one month and reduced the demand for gold, which does not generate profitability. Traders now expect the speeches of the main members of the FOMC to obtain greater clarity about the perspectives of rates. A stronger dollar usually limits the rise in gold and silver (XAG).
Despite the commercial agreements, geopolitical concerns remain the main engine of the strength of gold. The continuous attacks in Ukraine despite the high fire, along with the increase in tensions with Israel and on the border between India and Pakistan, continue to suppress the appetite for the risk.
Technical Gold Analysis (Xau)
Daily Gold Graph – Resistance
The daily gold graph shows that the price rejected the resistance zone at $ 3,370 and is correcting down. A solid support is between the $ 3,100 and $ 3,200 zone. In addition, the orange strip between $ 2,900 and $ 3,000 remains the pivot level of this correction. Despite the correction, the trend remains strongly bullish, and a break over $ 3,500 will probably trigger a strong rebound towards the $ 4,000 area.
