Gold drops $179 from $4,211 high as Fed rate cut expectations fade

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.