Is XAUUSD Ready for a Rebound?

On Tuesday, Spot Gold (XAU/USD) experienced a sharp decline, reaching a two-week low of $1,900.83, largely driven by a strong surge in the US Dollar amid a worsening market sentiment at the week's start. Investor concerns grew due to central banks' commitments to prolong higher interest rates and disappointing US economic data. The technical analysis for XAU/USD suggests a further downward trend, with the pair dropping below key moving averages, particularly the 100 Simple Moving Average (SMA). The Momentum indicator is decreasing, and the Relative Strength Index (RSI) remains in a bearish position. The 4-hour chart supports a bearish extension, highlighting a breach of the 200 SMA and downward momentum in technical indicators like RSI. XAU/USD has dipped below its previous September low and is now eyeing a test of the August monthly low. Key support and resistance levels are identified. The US CB Consumer Confidence Index and New Home Sales demonstrated concerning figures, amplifying worries about a potential recession. Despite some positive data from the Richmond Fed Manufacturing Index, the focus remains on the probability of monetary tightening and its implications on global markets. Wall Street responded with a sell-off, driving demand for the US Dollar and keeping XAU/USD within a lower monthly range. Additionally, the 10-year Treasury note yield reached its highest level since 2007, contributing to market jitters. Let me know what you think, comment, and leave a like. Greetings and happy trading from Nicola, the CEO of Forex48 Trading Academy.