Spot gold has enjoyed a strong run, rebounding off a key support and now pressing against a key resistance level.
How high can the yellow metal fly before sellers step in again?
We’re checkin’ out the daily time frame, yo!
XAU/USD Daily Chart Chart by TradingView
The U.S. dollar has been slipping as traders lean into multiple rate-cut expectations and worry about the Fed’s policy independence.
At the same time, safe-haven demand has kept gold supported, with Russia-Ukraine tensions and renewed concerns over tariffs and global growth giving the yellow metal a steady bid.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and gold, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
XAU/USD, which just bounced off the daily chart’s 100 SMA, is now testing the $3,400 psychological handle that lines up with August’s highs.
Note that the area also sits near the R1 Pivot Point at $3,396 and the $3,440 range resistance that has held strong since April.
A clean break above $3,400 with bullish candlesticks could open the door for a run back toward the $3,440 area or even fresh 2025 highs.
But if the move stalls and price slips back under $3,400, bears could seize control and drag XAU/USD toward the $3,350 mid-range and the 100 SMA support.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
