Gold Falls Again: What Is Behind the Decline During the Asian Session?
Thursday Morning: Gold Opens in Negative Territory
Asian trading on Thursday began with the gold market deciding to cool off slightly. COMEX gold futures for August delivery fell by approximately half a percent, settling at around $4,032 per troy ounce. At first glance, the decline appears modest—just 0.49%. However, in the gold market, even movements of this size are rarely accidental. Behind every change in price are investors’ expectations, fears, and calculations.
Interestingly, the decline is taking place against a backdrop of rather contradictory signals from global markets. On the one hand, the US dollar strengthened slightly, with the USD Index rising by a symbolic 0.03% to 100.30. This movement can hardly be described as a confident surge, but because gold generally has an inverse relationship with the US currency, even a slight indication of dollar strength can be enough to trigger a price correction.
On the other hand, the geopolitical situation remains tense, which would normally encourage investors to move into safe-haven assets—gold above all.
However, markets, as we know, do not always behave according to textbooks. The current dynamics of gold provide a perfect example.
Technical Picture: The Levels Everyone Is Watching
Technical indicators present a highly revealing picture. The low of today’s session was $3,990.40 per ounce. This is not merely a random figure—it represents a significant support level that traders have been monitoring for several weeks. A break below this level could open the way for a deeper correction, but buyers are continuing to defend it for now.
Resistance is located considerably higher, at $4,144.60. The price is fluctuating between these two levels as it attempts to find equilibrium. A range of almost $150 is substantial for gold, but looking at the metal’s performance over recent months, the market has already become accustomed to such price...
