GOLD Short-Term Bearish Outlook

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Gold appears likely to experience a bearish move in the short term before potentially rebounding, influenced by key psychological levels and bearish market sentiment. The current downtrend could see price action test the following levels:

• 2573-2568: The hourly fair value gap (FVG), where short-term bearish pressure may continue.
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• 2555-2556: A breakaway gap on the 4-hour chart, marking a pivotal zone for potential bearish continuation or bullish rejection.
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• 2535-2541: The major support zone that could act as a bullish foundation for price action, offering significant buying interest if tested.
  

However, should the US Federal Reserve signal a rate cut, this could trigger a bullish reversal, positioning gold for a significant upward move. A more accommodative monetary policy would likely weaken the US dollar, shifting market sentiment to favor a bullish outlook on gold.

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