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XAUUSD Holding the Line at 2300, But For How Long?
Been watching XAUUSD pretty closely lately. It's holding that 2300 level like a champ, which is honestly a bit surprising given the dollar strength we've seen. That $USO move today didn't do it any favors either, hinting at broader inflation pressures that should be supportive, but sometimes these things take time to play out. My concern is if we see a sustained break below 2290-2295. That's where I think the short-term structure really starts to fall apart and we could easily see a quick flush down towards 2250 or even 2230. I'm not calling for it, just stating the obvious downside risk if this support cracks. For now, it's holding, and that's the key. Any thoughts on what keeps it propped up here?
2 comments · 6 points
The dollar strength is the real headwind here. Gold might be holding 2300, but if the dollar keeps its current trajectory, that level isn't going to hold forever. I'd be more concerned about the next leg down if the DXY breaches 106 consistently.