🥇 Gold falls below $4,200: what’s happening?
At the start of a new week, gold faced strong selling pressure. XAU/USD dropped to around $4,179 per ounce, and the intraday decline exceeded 2%.
📉 The main reason is a shift in expectations for the Fed.
🛢️ Oil is rising again. Brent climbed above $106 after talks about opening the Strait of Hormuz remained uncertain. More expensive energy = a higher inflation risk.
🇺🇸 The dollar is strengthening, and the market is once again pricing in the possibility of further Fed rate hikes. Higher rates and US Treasury yields make gold less attractive because it does not generate interest income.
⚠️ Interestingly, geopolitical tensions usually support gold as a safe-haven asset. But this time they are also lifting oil and inflation expectations—and that factor is currently outweighing the usual support.
📊 What to watch next:
$4,200 is an important psychological level. Below that, the market has already tested the $4,180 area. For buyers to regain positions, it’s important to see a return above $4,200 and a reduction in pressure from DXY and US10Y.
The market is currently very sensitive to news about the US–Iran situation, oil, and the Fed’s future policy.
#gold #crypto #TRUMP
At the start of a new week, gold faced strong selling pressure. XAU/USD dropped to around $4,179 per ounce, and the intraday decline exceeded 2%.
📉 The main reason is a shift in expectations for the Fed.
🛢️ Oil is rising again. Brent climbed above $106 after talks about opening the Strait of Hormuz remained uncertain. More expensive energy = a higher inflation risk.
🇺🇸 The dollar is strengthening, and the market is once again pricing in the possibility of further Fed rate hikes. Higher rates and US Treasury yields make gold less attractive because it does not generate interest income.
⚠️ Interestingly, geopolitical tensions usually support gold as a safe-haven asset. But this time they are also lifting oil and inflation expectations—and that factor is currently outweighing the usual support.
📊 What to watch next:
$4,200 is an important psychological level. Below that, the market has already tested the $4,180 area. For buyers to regain positions, it’s important to see a return above $4,200 and a reduction in pressure from DXY and US10Y.
The market is currently very sensitive to news about the US–Iran situation, oil, and the Fed’s future policy.
#gold #crypto #TRUMP
