Gold Extends Losses as Dollar Rebounds: What's Next for XAU/USD?How much is 0 ETH worth in dollars?

The precious metal continues its downward trajectory for the third consecutive session during Tuesday's Asian trading hours. Multiple macroeconomic factors are creating opposing forces in the gold market, leading to heightened volatility.

Market Drivers Creating Mixed Signals

• Dollar strength weighs heavily on gold valuation as USD index shows recovery momentum
• Treasury yields climb following recent economic data releases, reducing gold's appeal
• Fed rate cut probability remains elevated at 69% for September, providing underlying support
• Middle East tensions continue to simmer, maintaining safe-haven demand potential

Market participants are closely monitoring upcoming US economic indicators, particularly the ISM Manufacturing PMI and Friday's NFP report, which could significantly influence Fed policy expectations.

Technical Perspective: Correction or Trend Reversal?

From a chart analysis standpoint, the yellow metal maintains its positive technical structure despite recent pullbacks:

• Price remains firmly above the 100-day EMA, indicating intact bullish momentum
• RSI readings near 55.70 suggest room for further upside potential
• Key resistance sits at $2,530-$2,540 range representing channel top and record highs
• Support levels begin at $2,470 (August 22 low) with stronger footing at $2,432

The broader ascending channel pattern suggests the current decline may represent a healthy correction rather than trend reversal, with $2,600 remaining a viable upside target upon breakout confirmation.

Macroeconomic Crosscurrents to Watch

Several fundamental factors continue creating competing influences:

• Chinese manufacturing data showed unexpected expansion, supporting industrial demand outlook
• US labor market indicators will be crucial for Fed policy path determination
• Geopolitical developments in Middle East could quickly reignite safe-haven flows
• Currency market fluctuations remain primary short-term price driver

Market participants should prepare for potential volatility spikes around key data releases and monitor technical levels for confirmation of next directional move.