XAUUSD Trade Set Up is positioned as a strong bearish continuation due to declining volume and bearish momentum across major Oscillators. It has broken the daily major support level at 2000 and poised for the next support level at 1,963 then potentially to 1,925.
A breach of 1,990 next support is 1,962
The market dynamics supports the bearish momentum of gold due to hike in the Core CPI. Inflation in the US is affected due to hike in the Shipping Cost linked to Red Sea Events and Hike in the Oil Price, which both have high probability to increase in the foreseeable future pushing the Inflationary pressure higher which will impact positively on the Yield rate of Treasury bonds specifically US2Y and US10Y.
Hence, the market dynamics supports the argument that Gold will depreciate in value on the back of US Dollar Appreciation on the back of higher Yield Rate on US treasuries.
A breach of 1,990 next support is 1,962
The market dynamics supports the bearish momentum of gold due to hike in the Core CPI. Inflation in the US is affected due to hike in the Shipping Cost linked to Red Sea Events and Hike in the Oil Price, which both have high probability to increase in the foreseeable future pushing the Inflationary pressure higher which will impact positively on the Yield rate of Treasury bonds specifically US2Y and US10Y.
Hence, the market dynamics supports the argument that Gold will depreciate in value on the back of US Dollar Appreciation on the back of higher Yield Rate on US treasuries.