Gold Price Drops Towards Key Support Zone

As shown on the XAU/USD chart, the price of gold per ounce has already fallen by more than 1% today. This bearish sentiment may be driven by:

→ A strengthening US dollar, influenced by President Trump’s plans to impose international trade tariffs.

→ Market positioning ahead of key US economic data releases, including GDP growth figures and the Core PCE Price Index.

→ A sharp decline in China’s gold imports via Hong Kong—the country’s main gateway for bullion purchases—which fell to a near three-year low in January.

Technical Analysis of XAU/USD Chart

Gold price fluctuations have formed an upward trend channel, marked in blue, with the current decline bringing the price close to its lower boundary.

Key levels to watch:
→ $2,922 has shifted from support to resistance.
→ $2,876, which previously acted as resistance, may now serve as a support level.

Given these factors, the intersection of the lower boundary of the blue channel and the $2,876 support level could trigger a rebound, offsetting some of the bearish momentum seen so far.