Gold Slips Toward $3,120 as Dollar Strengthens—Is a Pullback Next?
Tensions rise as gold loses altitude and traders brace for critical levels
Markets are watching gold closely this week as XAU/USD drops back toward $3,351, testing its 21-day moving average. A break below today’s level could open the door for a slide toward $3,120, signaling a shift after recent highs near $3,400.
Geopolitical tension in the Middle East and firm risk sentiment have pushed the US dollar higher, putting pressure on gold prices. Cheap oil and rising Treasury yields add to the bearish tone.
Still, bullish momentum remains intact: the daily Relative Strength Index is above midline, and many analysts point to the 21-day MA as a crucial pivot. Holding above $3,351 could set the stage for a rebound to $3,400–$3,440 and eventually challenge this month's peaks.
Traders should watch US PMI data and Fed officials' comments this week: a dovish shift might rescue gold, while hawkish tones could accelerate a downside move. In short, XAU/USD is at a key inflection point—stay tuned.