GOLD Falls on Stronger US Dollar and Fed Rate Hike Anticipation

1 May 2023

During the Asian session, gold is showing a decline towards a critical support level of 1,970.00. The price movement is influenced by the US Dollar Index (DXY) recovery, driven by optimistic forecasts that the Federal Reserve (Fed) will raise interest rates by 25 basis points (bps) on Wednesday. The XAU/USD price appears to have broken the lower side of a symmetrical triangle, but to confirm a short position, further verification is necessary, such as a breakout on our chart, as there is a possibility that this may be a false breakout.