GOLD PEAKS, BEARS PEEK IN - CORRECTION KICKS INSymbol - XAUUSD
Gold, having recently reached the psychologically significant level of 3500, has entered a corrective phase. This movement was partially driven by a slight de-escalation in the trade tensions between the United States and China.
Following a decline that did not reach the key support zone at 3288, gold prices began to rebound in early European trading hours, as market participants await the release of US PMI data. The precious metal had previously recorded an all-time high of 3500 but subsequently retreated, influenced by optimism surrounding potential easing in the US - China trade dispute.
The US dollar has also shown signs of recovery amid this correction. However, investor confidence remains cautious due to concerns over the unpredictability of President Trump. During this period of uncertainty, gold continues to consolidate in a corrective pattern.
Attention is now focused on the upcoming S&P Global PMI release, which may shape expectations for future adjustments in the US FED’s interest rate policy and influence the broader market direction.
Key Resistance Levels: 3340, 3360, 3366
Key Support Levels: 3317, 3288
From a technical perspective, gold remains within a corrective structure, maintaining a bearish outlook. Nonetheless, any unexpected statements from Trump could trigger renewed speculative buying. At this stage, a potential pullback from the 3340-3366 resistance range is plausible. Long positions may be considered either on a confirmed retest of support levels or upon a decisive breakout and close above 3370
