Gold drops $179 from $4,211 high as Fed rate cut expectations fade
|- Gold falls $179 from $4211 to $4032.
- Safe Haven demand drops as chances of December rate cut fade.
- $4210 turns into short term resistance.
- $4023 turns in to strategic support.
What happened in Gold today?
Early Asian session witnessed bullish continuation in Gold retesting $4211. However, price failed to gain acceptance above the $4211 high and subsequent price action followed a gradual lower high-lower low initially, only to unleash heavy and strong one sided sell off that dragged the metal all the way to $4038 as selling intensified after 4120-$4110 area failed to hold as support.
Fundamental drivers
Initial recovery attempts in Dollar, subsequent drop to yesterday's low 98.97.
What is expected ahead?
The next support sits at 61.8% Fibonacci retracement zone aligned with $4023.
The rebound needs a clear break above immediate hurdle $4100 followed by strong break above next resistance $4110-$4120 consolidation zone.
Short term challenge is $4185 followed by $4215.
If price retests $4023 on the downside, this zone calls for monitoring for any reversal signs and buyers intervention as failing to hold as support will expose next potential zone 78.6% Fibonacci retracement at $3963 which is considered as discounted zone, often a strong reversal area and point of interest with the best Risk vs Reward.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.