GOLD → What could trigger a fall?FX:XAUUSD is forming a false breakdown of the key resistance and as a consequence - passes into the phase of realization of the bearish pattern “Wedge”. If the general background persists, the price will be able to update the lows....
On the back of upcoming inflation data (PPI and CPI), traders have reduced expectations of a Fed rate cut to one this year. Forecasts point to a rise in PPI, which could strengthen demand for the dollar and cause a correction in gold prices. However, the weak data has the potential to push gold to $2,705.
Additionally, markets are watching Trump's policies and the possible introduction of new US tariffs, which could affect the dynamics of gold. Despite inflation risks, the metal has corrected from a one-month high, remaining a key hedge against inflation.
Technically, we have a correction forming after a false breakdown. Quite an important phase in the market. If the bears can keep the price below 2675 - 2681, the decline will continue in the short to medium term.
Resistance levels: 2675, 2681, 2690
Support levels: 2667, 2656
At the moment the price is testing 0.5 fibo, on the background of the secondary retest the zone can be broken (I do not exclude a false breakout and consolidation below 0.5 fibo, which will also lead to a fall) and the price will head to the retest of the imbalance zone, which can put pressure on gold. The most likely scenario is a retest of the zone of interest 2675 - 2681 before further decline
Regards R. Linda!
