Peter Smith
⬤ Gold went through another choppy overnight session, sliding from about $4,080 down to roughly $4,050 across Asian and European trading before ending near $4,070. The move marks the third consecutive day of losses, though prices are still holding above recent lows. Spot gold continues trading in a tight range between $4,050 and $4,100 as markets digest shifting expectations.
⬤ The yellow metal is facing pressure from multiple angles right now. Expectations for Federal Reserve rate cuts are fading fast, and the US dollar has been gaining strength, both of which are weighing heavily on gold's upside potential. Even geopolitical tensions, which typically support gold prices, aren't providing much of a boost in the current environment. The macro picture just isn't favoring the bulls at the moment.
⬤ The $4,000 level has become the critical support zone everyone's watching. If gold breaks below that psychological threshold, we could see additional downside momentum kick in. Right now, prices are hovering uncomfortably close to that level, with the overnight dip to $4,050 showing just how tight this range has gotten. Markets are responding to US dollar strength and recalibrating their rate-cut expectations ahead of key economic data this week.
Peter Smith
