Gold prices ($XAU /USD) faced heavy selling pressure, sliding to a three-week low below $4,550 during early European trading 💥📊. The decline comes after strong profit-taking and major macro developments shaking market sentiment.
⚡ What Triggered the Drop?
🔹 Reports confirmed Kevin Warsh as the next Federal Reserve Chair, easing concerns about the Fed’s independence 🇺🇸🏦
🔹 Signs of improved political stability in the U.S. reduced safe-haven demand for gold
🔹 Gold recently hit record highs, prompting traders to lock in profits 💰📉
🌍 But Downside May Be Limited…
Despite the sell-off, several factors continue supporting gold’s long-term bullish outlook 👇
🔥 Ongoing U.S.–Iran geopolitical tensions keep safe-haven demand alive
🏦 Strong and steady central bank gold accumulation worldwide
💵 Weakening confidence in traditional reserve currencies boosts gold appeal
📊 Key Data & Market Drivers to Watch
📌 U.S. ISM Manufacturing PMI expected at 48.3
➡️ A weaker-than-expected reading could weaken the U.S. Dollar and push gold higher 📉💲➡️🥇
📌 U.S. Producer Price Index (PPI) came in hotter than expected
➡️ Rising inflation may encourage the Fed to keep interest rates steady ⚠️
📌 Markets currently see an 87% chance rates stay at 3.50%–3.75%, with possible rate cuts starting in June ⏳📉
📈 Technical Outlook
✅ Long-term trend remains bullish with gold holding above the 100-day EMA
⚠️ Neutral RSI suggests possible short-term consolidation
🔼 Bullish Targets:
🎯 $5,000 psychological resistance
🎯 $5,182 next major resistance
🔽 Support Levels:
🛑 $4,620 initial support
🛑 $4,513 next downside zone
🛑 $4,275 key 100-day EMA support
🧠 Market Insight
Gold remains in a tug-of-war between profit-taking, monetary policy expectations, and global geopolitical risks ⚖️🌐. While short-term volatility is rising, the broader trend still favors long-term strength.
Stay alert — gold markets are entering a critical phase 🚨📊
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