GOLD presents bullish opportunity with discount price

Gold prices (XAU/USD) are currently exhibiting low volatility after experiencing a recovery phase from 1980.00. However, the yellow metal is struggling to maintain its recovery, as the US Dollar Index (DXY) has rebounded significantly and successfully defended the crucial support level of 101.65.

Investors have allocated their resources into the USD Index due to its safe-haven properties, anticipating the Federal Reserve's (Fed) predicted rate hikes aimed at mitigating stubborn inflation. Given the substantial reduction in US inflation and labor market slackening, this demand for the USD Index appears promising in the short term.

Nevertheless, the current price of gold represents a discount scenario, with the metal rebounding on the dynamic trendline in H1, which has previously acted as support. Furthermore, the price remains at a deep Fibonacci retracement, indicating a potential opportunity to purchase the metal at a discount.