NordKern - XAUUSD InsightGoldOANDA:XAUUSDNordKernNordKern | Simplified Insight XAUUSD Short Opportunity Ahead Gold is currently trading at around our main key level of 3370. The Gold Price Drop – July 23–24, 2025: Key Drivers and Market Insight Over the past two trading sessions, gold experienced a notable decline, reversing gains from earlier in the week. This movement was driven by a combination of geopolitical, macroeconomic, and technical factors that collectively reduced investor demand for safe-haven assets. 1. Easing Global Trade Tensions Reduced Safe-Haven Demand Recent developments on the geopolitical front played a significant role in weakening gold’s appeal. A trade agreement between the United States and Japan helped to ease market fears around global protectionism. In addition, progress toward a tariff truce between the United States and the European Union added to broader risk-on sentiment. These positive signals regarding global trade reduced the perceived need for defensive positioning, prompting a shift away from gold and into riskier assets such as equities. 2. U.S. Dollar and Treasury Yields While the U.S. dollar showed some signs of weakness, which might typically support gold prices, the impact was largely offset by a modest uptick in long-term U.S. Treasury yields. Rising yields make non-interest-bearing assets like gold relatively less attractive, contributing to selling pressure. This combination of neutral-to-negative macro signals limited gold’s ability to find support from the currency and bond markets. 3. Technical and Positioning Factors From a market positioning perspective, gold had recently rallied over several sessions, making it vulnerable to profit-taking. Once prices began to pull back, technical selling—including the triggering of stop-loss orders—amplified the decline. The market appears to be consolidating in the \$3,200–\$3,250 per ounce range, with broader risk appetite crowding out safe-haven bids. Summary of Contributing Factors FACTOR: U.S.–Japan and U.S.–EU trade deals IMPACT: Reduced geopolitical risks FACTOR: Rising U.S. Treasury yields IMPACT: Lowered gold’s relative appeal FACTOR: Technical selling & profit-taking IMPACT: Accelerated downside momentum Outlook Unless geopolitical risks resurface or inflationary concerns re-emerge, gold may continue to face downward pressure in the near term. Investors will be closely watching upcoming U.S. macroeconomic data and central bank commentary for signals that could shift the balance back toward defensive assets. Trade Setup - Short Bias Parameters: Entry: 3374.4 Stop Loss: 3387.3 Take Profit: 3345.4 Extended target: 3322 Key Notes: - Trade Deal Optimism: U.S.–Japan and U.S.–EU agreements eased global tensions, reducing demand for gold as a safe-haven asset. - Yield Pressure: Rising U.S. Treasury yields made gold less attractive compared to interest-bearing alternatives. - Technical Selling: Profit-taking and stop-loss triggers accelerated the decline after gold’s recent rally. This remains a tactically driven setup. Manage risk appropriately and stay alert for any renewed political developments.