GOLD price dips below $1,940 amidst US default concerns.
The price of gold, represented by XAU/USD, has slipped below the crucial level of $1,940.00 as the US Dollar Index continues to exhibit significant strength in the market. The recent comments from Fed's Collins, suggesting a potential pause in interest rate increases, have also influenced the gold price dynamics.
Following a breakdown of the consolidation range between $1,952 and $1,985, the gold price has experienced a shift in sentiment, indicating an imbalance in the market. This has contributed to the downward pressure on gold as it breached the immediate support level at $1,940.00 during the Asian session.
The decline in gold price can be attributed to the concerns surrounding the United States economy, particularly the ongoing debate and divergence of views among White House officials and Republican representatives regarding the budget. The situation has raised fears of a potential default scenario, adding to the bearish sentiment in the market.
In the M30 timeframe, our analysis suggests a new bearish impulse in line with the main downtrend, particularly as the price approaches the 61.8% Fibonacci level. This reinforces our idea of a continued downward movement in the gold price.
Following a breakdown of the consolidation range between $1,952 and $1,985, the gold price has experienced a shift in sentiment, indicating an imbalance in the market. This has contributed to the downward pressure on gold as it breached the immediate support level at $1,940.00 during the Asian session.
The decline in gold price can be attributed to the concerns surrounding the United States economy, particularly the ongoing debate and divergence of views among White House officials and Republican representatives regarding the budget. The situation has raised fears of a potential default scenario, adding to the bearish sentiment in the market.
In the M30 timeframe, our analysis suggests a new bearish impulse in line with the main downtrend, particularly as the price approaches the 61.8% Fibonacci level. This reinforces our idea of a continued downward movement in the gold price.
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