Gold Price Plunges Below Key Levels Amid Rising Tensions and Hawkish Sentiment
Gold's recent rally has stalled as buyers lose momentum, driven by renewed tensions between the US and Iran, hawkish signals from Fed Chair Warsh, and rising bond yields globally.
The past week hasn't been kind to gold, with a potential upside break in late August turning into a downturn. The dollar has recovered, and against the backdrop of rising bond yields, gold is feeling the heat once again.
Gold's price action now falls below the 100-day moving average at $4,360, also breaking below the 50.0 Fib retracement level from July to August at around $4,328. This suggests a bearish directional bias for gold, with buyers losing much of their momentum from the August break higher.
Barring the 61.8 Fib retracement level at around $4,241, there isn't much stopping gold from stumbling back towards the consolidative region around $4,000 to $4,130.