XAUUSD LONG

The gold price extended the fall. The metal fell sharply during the Asian session to below $4,370 amid inflation risks and prospects of a restrictive rate environment. Technically, the overall momentum looks like the metal will continue the downtrend further today before the rebound, as the momentum signals that the sellers are currently in control.

Key Indicators

• Despite the steep fall, the metal is close to a key demand zone, $4,330/00, with oversold conditions. Therefore, closely monitor the next US trading session for a technical rebound after prices test support levels.

Fundamental Context

Looking ahead, metal prices are expected to remain highly volatile over the next 2 days. The upcoming US PCE inflation data is the key release for gold. However, traders will also be watching the latest comments from the Fed policymakers.