GOLD Price Under Pressure from Strong USD and Market Sentiment

The price of gold (XAU/USD) is currently trading near its lowest levels in two weeks, having recently pulled back from its intraday high. This decline can be attributed to a diminishing market sentiment caused by the lack of clarity surrounding the US default conditions.

Despite the retreat in Treasury bond yields, the US Dollar remains relatively strong, thanks to recent positive economic data and hawkish comments from the Federal Reserve (Fed). This resilience of the US Dollar puts additional downward pressure on the price of gold.

Furthermore, the prevailing negative sentiment in the market, combined with the metal's inability to overcome a significant short-term resistance level, provides optimism for XAU/USD bears. This sentiment is reinforced by a relatively light economic calendar and mixed risk factors influencing the market.

Looking ahead, it is crucial to monitor the price action between the 50% and 61.8% Fibonacci levels, specifically around 1920.000. This range presents a potential area where the price of gold may experience a pullback before resuming its upward trajectory.

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