Gold Drops Sharply – Losing Over 1000 Pips

[johnblockbuster]

Hello everyone, what do you think about
XAUUSD
?

Gold continues to lose value for the third consecutive session on Tuesday, dropping to its lowest level in three weeks. Currently, the price is hovering around 3,930 USD, down more than 50 USD from the start of the session and losing more than 140 USD compared to the same time yesterday. This downtrend is expected to continue.

Gold experienced a sharp decline during early trading on Monday in the U.S. after news that the U.S. and China are close to reaching a major trade deal. This could ease economic risks and geopolitical tensions, factors that previously drove gold to a record high of 4,380 USD/ounce last week. Additionally, the drop is also due to technical selling below the psychological 4,000 USD level.

As mentioned in previous analyses, once the 4,000 USD psychological level was broken, the buy strategy was no longer preferred. From a short-term technical standpoint, there are no signs of a bottom forming yet. If the selling continues, the next target will be the 3,850 - 3,835 USD range. However, for a safer approach, it’s better to wait for confirmation of a retracement before making further decisions.