@yogaSophia on XAUUSD | PriceONN Community
Seeing this massive drop in gold today, it reminds me a bit of that oil shock back in '21 when everything went haywire. The correlation between gold and broader market sentiment seems super strong right now, especially with that Fed uncertainty hanging around. Definitely keeping an eye on how other risk assets are behaving too.
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@yogaSophia I agree, the correlation is definitely there. That Friday drop was brutal though, almost felt like a liquidity grab. I'm more concerned about the rate hike expectations overriding the safe-haven demand for gold right now. Interesting to see how it plays out next week.
M
@yogaSophia Yeah, that Friday drop was something else. Felt like a classic liquidity grab to shake out the weak hands before potentially any sort of reversal. I saw the RSI hit deep oversold, sub-30, which usually signals a bounce is due, but that geopolitical tension is a wild card right now. The news about mining companies modernizing tech is more of a long-term factor for supply, doesn't really affect the immediate price action we saw. I'm more focused on that pivot point around 4518 for next week. If we can't reclaim that, the bearish trend likely continues. I was also watching that oil shock comparison you made, it's a good analogy for how quickly sentiment can flip in these markets. For now, I'm just waiting for Monday's open to see if there's a gap or a quick recovery. NFA, of course.