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Gold Spot / U.S. Dollar
Short
Updated

Gold breaks downtrend channel, next target lower!

1 045
Gold is currently trading within a clear downtrend channel, marked by lower highs and lower lows. After multiple rejections at the upper boundary of the channel, gold has begun its downward trend towards key support levels.

From a technical standpoint, the recent pullback and structural breakdown indicate that the market may continue its bearish trend. Last week's PPI data showed a 0.9% increase, exceeding expectations, which has strengthened the USD and added pressure on gold. This news reduces expectations for aggressive Fed rate cuts, further strengthening the dollar and diminishing gold's appeal as a safe-haven asset.

Looking at the chart, we can identify key support levels to monitor. The first target is around 3,311.000, with the potential to continue falling to 3,287.800 if price breaks below the near-term support at 3,310.000.

Key Levels:
Resistance: 3,355.700 (Upper boundary of the downtrend channel)
Support: 3,311.000, 3,287.800
Next Target (TP1): 3,311.000
Next Target (TP2): 3,287.800

My Advice:
With the bearish structure on the chart and the pressure from the PPI data, the outlook for gold remains to the downside. I recommend looking for short opportunities near 3,355.700, with stops above resistance and targets at 3,311.000 and 3,287.800.
Trade closed: target reached

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