Gold continues to be under selling pressureDear traders! Gold experienced significant volatility yesterday with a sharp slide above the $2347 support level and reaching the $2334 mark in line with a classic bearish flag structure. At the time of writing the price is aiming to test the $2,325 mark amid a correction and sell-off supported by a firmer US Dollar and higher US bond yields. Diminishing expectations of a Federal Reserve interest rate cut in September caused some selling pressure on the precious metal as it would increase the opportunity cost of gold.
Accordingly, the resistance area at 2347 USD continues to hold the price and is actively defended by sellers on the basis of the down wave. I expect a test of horizontal support and a bounce aimed at retesting the 34.89 EMA levels, the price reaction to the liquidity zone will be consistent with our selling strategy. It is expected that the price will reach 2325 and 2307 at least.