🪙💥Gold and Silver Technical Analysis: Key Support Holds Amid Rising Volatility
🪙Gold dropped to $4,680 as rising margin requirements, equity market stress, and easing geopolitical tensions pressured prices, but strong technical support around $4,400 and ongoing uncertainty over Fed policy and USD strength could support a bullish rebound.
🪙Gold (XAU) price dropped to about $4,680 in early trading in Asia on Friday. Traders responded to losses in stock market and moved to cover positions. The market is now waiting for the Michigan Consumer Sentiment Index, which could influence expectations around inflation and interest rates.
🪙The CME Group increased margin requirements for Gold and Silver (XAG) futures, thereby making it more costly for traders to hold positions. That change caused forced selling by some participants. The drop in tech stocks also forced traders to sell gold to meet collateral requirements which contributed to weakness in metal over the short term.
