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Gold's Downturn: Selling Opportunity or Temporary Dip?

Gold  lost its shine on strong US dollar. It hits an low of $3275 at the time of writing  and is currently trading around $3273.

Rate Cut Expectations on the Rise

 

According to the CME Fed Watch tool, the chances of 25 bpbs rate cut in June 18th 2025 meeting have decreased to 60.70% from 61.10% a week ago.

Technical Analysis: Key Levels and Trading Strategy

Gold prices are holding  below  short term moving average 34 EMA and 55 EMA and  above long-term moving averages (200 EMA) in the one hour chart. Immediate support is at $3270 and a break below this level will drag the yellow metal to $3232/$3168/$3100/$3000. The near-term resistance is at $3330 with potential price targets at $$3525/$3560.

It  is good to sell on rallies around $3285-86  with a stop-loss  at $3305 for a target price of $3230/$3200.

 

 

 

 

 

 

 

 

 

 

 

 

 

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