GOLD - RETEST OF TREND RESISTANCE BEFORE POTENTIAL DECLINE

May 19

Symbol - XAUUSD

CMP - 3246

Gold is staging a modest recovery amid ongoing market uncertainty. However, a significant resistance zone lies ahead, which could limit further upside and potentially initiate a reversal.

Since the session's open, prices have rebounded slightly following a week-long decline. The current upward momentum is constrained by mixed market signals: on one hand, pressure on the US dollar and Moody’s downgrade of the US credit rating are providing support for gold. On the other hand, elevated bond yields and prospects of new US trade agreements are capping gains.

Market participants are closely watching upcoming Federal Reserve commentary and tracking developments in US trade negotiations with key global partners. In an environment marked by concerns over fiscal stability and weaker economic indicators, gold may maintain a positive bias. However, the emergence of favorable trade news could shift sentiment and lead to renewed downward pressure.

Key Resistance levels: 3257, 3265
Key Support levels: 3204, 3153

A failed breakout above the identified resistance range would signal a lack of upward momentum. Should the price consolidate below the 3257 level following a false breakout of the 3257-3265 zone, it may trigger a reversal and drive the market toward key support levels.

May 20

Trade closed: target reached

First target reached.

3246 to 3205, $41 move captured.