Recently, central banks have been instrumental in supporting the value of gold. Their interest in purchasing precious metals has reached new heights, playing a major role in stabilizing gold prices.
Despite this, the US Federal Reserve continues to hold a significant position in the gold market, and many anticipate an increase in gold prices once the current monetary tightening cycle comes to a close.
Gold is currently selling at $196.20, which is the 23.6% Fibonacci retracement level of its most recent daily drop.
This indicates a potential downside risk and suggests that the lows of $1932.00 may be tested monthly in May.
The daily chart reveals that gold is positioned below the bearish 34 and 89 EMAs, with its slope extending below the aforementioned Fibonacci level.