XAUUSD| It's time for a correction toward 2250$

22 Apr

The analysis on gold presents a complex picture influenced by various factors. Initially, the precious metal recorded a significant loss, exceeding 2% during the day and dropping below $2,340. This decrease was primarily attributed to the easing geopolitical tensions, which prompted a deep correction in the XAU/USD market. Additionally, the resilience of US Treasury bond yields added bearish pressure to the pair. From a fundamental perspective, spot gold is under intense selling pressure at the beginning of the week, with XAU/USD approaching a daily low of $2,329.51, the lowest in a week. The recent decline was partly caused by an increased appetite for high-yielding assets, as evidenced by investors fleeing to Asian stocks amid the easing tensions in the Middle East. The US dollar, although mixed against its major rivals, shows particular weakness compared to commodity-linked currencies. However, activity remains well-contained pending first-tier data scheduled for the week, especially regarding the release of the first estimate of Q1 GDP and the March Personal Consumption Expenditures Price Index in the United States. In summary, gold exhibits bearish signals in the short term, with a combination of technical and fundamental factors contributing to its current weakness. However, the situation could evolve in response to any significant geopolitical developments or economic data.