Gold price forecast (XAU/USD) have dropped slightly after hitting a record high on Thursday. This decline ends a three-day winning streak. Investors are selling gold to take profits, and a stronger US Dollar (USD) is also pushing prices lower.
Key Points:
- Gold prices fall slightly after reaching a record high.
- Investors sell gold to secure profits.
- A stronger US Dollar reduces gold’s appeal.
- Global uncertainty supports gold in the long run.
Market Overview: Why Gold Prices Are Falling
Stock markets in Asia are following gains on Wall Street after the US Federal Reserve decided to keep interest rates unchanged. The Fed also confirmed plans for two interest rate cuts this year.
In global news, US President Donald Trump and Russian President Vladimir Putin agreed to stop attacks on Ukraine’s energy sites. Trump and Ukrainian President Volodymyr Zelenskiy are also working on ending the Russia-Ukraine war. These events have boosted investor confidence. However, concerns remain over Trump’s trade policies, which could slow economic growth.
Gold Price Levels to Watch
Gold price forecast has been rising, but it may slow down for now. The daily Relative Strength Index (RSI) is above 70, meaning gold is overbought. This could lead to a short-term drop before prices rise again.
Gold is currently above $3,000, a key level. If prices fall, buyers may step in around $3,023-$3,022. However, if gold breaks below $3,000, it could drop further to $2,980-$2,978 and possibly as low as $2,930 or $2,900.
Conclusion
Gold prices remain strong despite a slight dip. Investors will watch for updates from major central banks and US economic reports like jobless claims and home sales data. While short-term drops may happen, gold is expected to stay in an upward trend.
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