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Gold Drops After $2,900–$3,000 Rejection as US Dollar Strengthens on Inflation Fears

Gold (XAU/USD) retreats after hitting strong resistance at $2,900–$3,000, pressured by a stronger US Dollar amid inflation concerns. While US GDP remains steady at 2.3%, rising Core PCE inflation (2.7%) fuels expectations of a cautious Fed stance, boosting the greenback.

Technically, gold is correcting lower, with key support at $2,865. A break below could extend losses to $2,800, while holding above may trigger a rebound toward $2,950–$3,000. The RSI is cooling off from overbought levels, suggesting further downside, but the ascending broadening wedge and ascending channel signal a potential buying opportunity.