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Gold – Bears Enter The Bullion Market, Beijing Agrees to Reduce Tariffs

During the Asian open, gold prices took a bearish turn as the US dollar rebounded. The dollar index that measures the Greenback’s strength against a basket of other currencies edged up 0.2% to $97.072, causing a drop in the gold prices.

What caused a sudden drop in gold?
Well, the demand for safe-haven gold started diminishing after White House economic advisor Larry Kudlow backtracked from US President Donald Trump’s announcement that Beijing had agreed to reduce tariffs on US-made cars. This triggered the demand for the US dollar while investors started selling gold.

GOLD – Technical Outlook
On the hourly timeframe, gold is likely to test the resistance come support level of $1,234. Below this, gold prices can drop towards $1,230 and $1,227. While gold can stay bullish above $1,234 to target $1,239 today.

Support Resistance
1235.84 1241.64
1233.14 1244.74
1227.34 1250.54
Key Trading Level: 1238.94

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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