Gold Price Forecast: Is This Drop Temporary as Liquidity Stress and Yields Pressure Gold?
By:
Gold dropped sharply as liquidity stress and rising US yields triggered strong selling pressure, but the broader bullish structure remains intact with fiscal pressure supporting a potential recovery from pivotal level.
Gold (XAU) prices dropped sharply after breaking below $4,500 and tested the $4,000-$4,100 area. This drop was fuelled by liquidity stress in the Gulf region & rising US yields which acted as a trigger to strong selling pressure. In my opinion, this move creates the potential for short term consolidation around current levels with a strong recovery if support is held. This article presents key macro drivers, technical structure and market signals that are influencing the next move in gold.