Gold Is Approaching a Major Reversal Area
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$XAUT has fallen nearly 3% to its lowest level in more than a year as fading hopes for a U.S.-Iran agreement pushed oil higher and revived inflation concerns.
Stronger U.S. inflation, a more hawkish Fed outlook, and a stronger Dollar are also keeping pressure on precious metals.
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Technically, Gold has been moving inside a Descending Channel on the Daily chart for more than eight months and is now trying to break below the ($3,870-$4,007) Support Zone.
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My main downside target remains around $3,650.
This area is especially important because it overlaps with the PRZ around ($3,630-$3,767), Long Liquidation levels near ($3,633-$3,735), and the lower boundary of the channel.
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I still expect the broader bearish trend to continue, but once Gold reaches this cluster, a temporary bullish recovery could develop.
That rebound could simply become a pullback toward the broken support before sellers return.
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Tomorrow’s U.S. PPI and any new developments involving Iran, the U.S., or the Middle East could quickly change this setup.
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Which level comes first?
🔴 $3,650
🟢 $4,007
#GOLD