Gold short opportunity as the US dollar soars

The price of Gold recently dropped below the 4-week low amidst the strengthening US dollar. The price of the US dollar is expected to rally further in the coming weeks which will potentially push the Gold price further down.

The price dropped below the 1905.0 support level and will possibly continue the bearish trend. I am expecting the price will make a pull-back to the same level which now will act as a resistance level and from there it will continue its downward trend. The 0.786 Fibonacci level around 1905.0 is another confirmation for sell entry at this level.

I am expecting the Gold price to drop to 1850.00 support level in the coming weeks.

There is a 40% chance that the Fed will need to raise interest rates “meaningfully” to beat inflation, Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday.

However, the Gold price will remain calm this week as there is no major news that could impact the market significantly.

• The price of Gold is under pressure amid the strong rally of USD.  
• USD is expected to continue the rally for the coming weeks, so the Gold price will keep dropping.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio for this trade is 1:3.8.
• Good luck!

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