Gold Loses Shine as US Data Fuels Rate Hike Concerns

The price of gold (XAU/USD) dipped below $2,300 on Tuesday, pressured by a combination of factors:

• Improved Market Sentiment: Positive sentiment across Asia-Pacific markets dampened the demand for gold as a safe haven asset.
• Strong US Employment Costs: Higher-than-expected US employment cost data fueled concerns about persistent inflation in the US.
• Rising US Dollar: The US Dollar strengthened on the inflation data, putting additional downward pressure on gold prices (as the USD and gold typically have an inverse relationship).

Gold Price Possibly in Downtrend

Technical analysis suggests gold might be unfolding a bearish Measured Move price pattern. A break below $2,290 could confirm this pattern and lead to further declines towards $2,267 or even $2,245.

Bullish Potential Not Completely Eliminated

Despite the current downtrend signals, a potential upside still exists. A surge above $2,350 (the cluster of moving averages and the peak of wave B) could indicate a renewed bullish trend and potentially lead to a retest of the $2,400 highs.

Long-Term Outlook Still Bullish

The overall long-term trend for gold remains positive, offering some hope for gold bulls.