Gold prices encountered resistance near the $3,400 mark, prompting a shift in market sentiment. Following a brief uptick during the Asian trading session, gold (XAU/USD) faced fresh selling pressure.

Market analysts note that the recent strengthening of the US dollar serves as a significant headwind for gold, leading to a decline in its price. The inability of gold to maintain its value above the $3,400 threshold raises concerns about its near-term outlook.

Investors should remain vigilant as the market reacts to this trend. A sustained increase in the US dollar could further impact gold prices, urging caution among traders.