HomeContributorsTechnical AnalysisXAU/USD Analysis: Gold Price Drops to $2,600 per Ounce

XAU/USD Analysis: Gold Price Drops to $2,600 per Ounce

On November 4, when gold was trading around $2,750, we observed bearish signals on the XAU/USD chart.

Since then, the price has declined to the $2,600 level, briefly dipping below it — the lowest price since mid-September.

According to Trading Economics, investors may be losing interest in gold for several reasons:

→ Strong U.S. Dollar: A robust dollar reduces gold’s appeal as a safe-haven asset.

→ Optimism Following Trump’s Election: Market participants are reacting to Trump’s fiscal and monetary policy pledges, shifting toward riskier assets.

→ Upcoming Key U.S. Inflation Data: The CPI data, expected today at 16:30 GMT+3, may reveal no unexpected negative trends.

Today’s XAU/USD technical analysis shows that:

→ Gold’s price is at the lower boundary of the blue channel, which has been extended to reflect recent trading data.

→ The channel’s median line has shifted from support to resistance (shown with arrows).

It is possible that today’s inflation news may catalyse one of two scenarios on the XAU/USD chart:

→ Bullish Rebound: Buyers may attempt to resume an uptrend from the lower boundary of the blue channel, facing resistance around $2,655.

→ Bearish Control: Sellers may continue to dominate, potentially making the blue channel less relevant as price stabilises below $2,600.

Start trading commodity CFDs with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

FXOpen
FXOpenhttps://www.fxopen.com/
FXOpen is a global Forex and CFD Broker, founded in 2005 by a group of traders. With over 16 years of experience, the company has gained an excellent reputation a major brokerage that continues to expand rapidly. The broker offers a choice of platforms, including the popular MT4 and MT5 platforms, with a wide range of trading instruments with spreads from 0.0 pips: 600+ FX, index, share, commodity and cryptocurrency CFDs. FXOpen also provides its own PAMM technology, allowing clients to benefit from the strategies of experienced traders with a proven track record of successful trading and guarantees automatic distribution of profit and loss between the strategy provider and the strategy followers. CFDs are complex instruments and come with a high risk of losing your money. PAMM is only available in certain jurisdictions. Cryptocurrency CFDs are not available to Retail clients at FXOpen UK.

Featured Analysis

Learn Forex Trading

Do You Have a Cut-Off Point?

Myths of Fear and Greed in FX

Exchange Rate on Forex

Explaining Bullish Trend Reversals

Defining A Great Trader

Using a Multi-Timeframe Approach