🏆Gold breaks below $1,900!

Gold dropped more than 1.5% today and broke below $ 1,900 an ounce. Earlier at the beginning of today's trade, price fell below the 50.0 retracement of the entire pandemic rebound. Earlier price twice tested support around USD 1,900, however demand side managed to halt declines. Now, the key test for gold is the region between $ 1890-1900. The current situation is similar to 2011-2013, when the $1500-1530 zone was tested, also among fears regarding monetary tightening. However at the moment expectations are even higher, although it must be remembered that liquidity conditions also improved. A potential break below $1900 permanently could initiate a bigger downward move towards the area around $1600-1700 in the longer term, as indicated by the current levels of US bond yields. On the other hand, it should be remembered that gold is also seen as a hedge against inflation and geopolitical turmoil, which we are now  dealing with. If buyers manage to defend the area around $ 1890-1900 then gold may move into consolidation.

Source: xStation5