GOLD Price Continues to Drop, Investors Remain Cautious.

Gold remains within a bearish channel, and the price is expected to continue dropping after a rebound at the 61.8% Fibonacci level. Our target for the price is around $1928.000. The fundamental analysis of gold indicates that it attempted a recovery after reaching near $1,940.00. It has extended its rebound to around $1,950.00, mainly due to a sharp drop in the US Dollar Index (DXY). The fluctuating nature of the USD Index has made investors cautious, and the absence of significant catalysts this week has limited its movement.

S&P500 futures have fully recovered from their previous losses and turned positive, indicating a recovery in market participants' risk appetite. It seems that investors have started dismissing concerns related to potential interest rate hikes by the Federal Reserve (Fed).

Although the USD Index has found intermediate support around 103.80, its situation appears vulnerable as market sentiment has become optimistic. Despite the short-term correction, the USD Index is expected to remain strong as the Fed is likely to maintain a hawkish stance.

Furthermore, a survey by Reuters suggests that significant weakening of the currency would require rate cuts from the Federal Reserve. Additionally, the Fed is expected to pause in June for the first time in over a year and maintain its key interest rate at 5.00%-5.25% for the remainder of the year.