XAU/USD: Awaiting a Rebound After Filling the GAP?

Gold continues its short-term downtrend to fill the GAP before potentially rebounding. The price is currently testing the 2,844 - 2,850 support zone, aligning with the previous low, forming a key confluence area. If this level holds, gold could bounce back and test key resistance levels at 2,882 - 2,898.

However, the upward move won’t be easy as the EMA 34 & 89 continue to act as dynamic resistance. If the price fails to break above 2,882, selling pressure may return, pushing gold back to retest lower support levels.

The upcoming U.S. ISM Manufacturing PMI data (03/03/2025) could trigger strong volatility. If PMI exceeds 50, signaling economic expansion, USD strength may increase, pressuring gold lower. Conversely, weaker-than-expected PMI could support gold, fueling a potential price recovery.