Gold Drops Sharply as Risk-On Mood and Strong Dollar Dominate

In today’s technical analysis, we turn our attention to gold, which is undergoing a significant sell-off driven by a combination of macro and technical factors. The dominant risk-on sentiment is pressuring safe haven assets, while strength in the U.S. dollar is adding further downward force to gold prices.

From a technical perspective, the situation has deteriorated. The price has broken below the orange horizontal support as well as the black uptrend line, both of which had previously provided solid foundations for buyers. The breakdown of these two key structures confirms a long-term sell signal.

The nearest support now lies at the blue horizontal level around $3,200 per ounce, and gold is rapidly approaching that target. A breakout below $3,200 would reinforce the negative momentum and pave the way for deeper declines, possibly toward lower support zones established earlier this year.

Until gold can reclaim its broken supports or deliver a convincing bullish reversal, sentiment remains firmly negative.

Source: https://www.axiory.com/analytics/technical-analysis/gold-drops-sharply-as-risk-on-mood-and-strong-doll