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Gold's Bearish Divergence: Profit-Taking Signals Potential Sell-Off

Bearish divergence-  CCI(50)(Weekly chart)

Gold pared most of its gains due to profit booking.  It hits an high of $3500 at the time of writing and is currently trading around $3450.

Rate Cut Expectations on the Rise

 

According to the CME Fed Watch tool, the chances of 25 bpbs rate cut in June 18th 2025 meeting have increased to 62.10% from 60.10% a week ago.

Technical Analysis: Key Levels and Trading Strategy

Gold prices are holding below short term moving average 34 EMA and 55 EMA and above long-term moving averages (200 EMA) in the 15 min chart. Immediate support is at $3440 and a break below this level will drag the yellow metal to $3430/$3397/$3365/$3300/$3268. The near-term resistance is at $3500 with potential price targets at $3525/$3560.

It is good to sell on rallies around $3463-65  with a stop-loss at $3500 for a target price of $3300/$3270.

 

 

 

 

 

 

 

 

 

 

 

 

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