Gold prices remain under pressure due to the initiation of legal proceedings in the U.S. and the strengthening of the U.S. dollar in the Forex market. It appears that a significant number of market participants are betting that Trump's battle with the "deep state" may ultimately fail, which would noticeably ease global tensions and boost demand for risk assets. Consequently, demand for safe-haven assets—gold being one of them—could decline.
From a technical perspective, gold continues to trade within a short-term downtrend and, given recent developments in the U.S., could decline toward the lower boundary of the trend at 3080.00.
Technical Outlook and Trading Idea:
The price is currently below the midline of the Bollinger Bands and below the SMA 5 and SMA 14. RSI is below the 50% level, and Stoch is also in bearish territory.
I believe gold prices may continue to decline towards the intermediate level of 3213.40. A potential selling entry point could be at 3273.50.
