Gold saw a powerful rally yesterday, surging from $3,350 to nearly $3,400 — an impressive $50 move, equivalent to 500 pips.
From a macroeconomic perspective, this recent uptrend in gold is driven by a combination of supportive factors. First, the U.S. dollar has shown clear signs of weakness following dovish signals from several Federal Reserve officials, who hinted at potential rate cuts if the U.S. economy begins to slow. In addition, geopolitical risks such as renewed U.S.–China trade tensions, instability in the Middle East, and slowing growth in China are all pushing investors toward safe-haven assets like gold. Another key driver is the ongoing accumulation of gold by central banks worldwide — particularly China and Turkey — highlighting gold’s growing appeal as a strategic reserve asset. Together, these factors have built a strong foundation for gold’s upward momentum, explaining why prices remain above yesterday’s opening level, despite the current short-term pullback.
From a technical and short-term outlook, gold (XAU/USD) continues to show a bullish setup supported by both price structure and market sentiment. On the H2 timeframe, gold remains in a clear uptrend, with a series of higher highs and higher lows. After breaking through a strong resistance zone around $3,374 (aligned with the 0.5 Fibonacci level), price surged to a peak of $3,403 before entering a healthy retracement phase.
Currently, the $3,367–$3,374 zone is acting as newly-formed support — a key confluence area that aligns with:
In the short term, as long as this support zone holds, the bullish outlook remains valid. A successful retest of this area could reignite buying pressure, with the next target set around $3,423 — in line with the projected extension of the previous bullish leg.
However, if buyers fail to defend this zone, the bullish setup could be invalidated or lose momentum. This area warrants close monitoring of price action and volume behavior to confirm the next directional move.
From a macroeconomic perspective, this recent uptrend in gold is driven by a combination of supportive factors. First, the U.S. dollar has shown clear signs of weakness following dovish signals from several Federal Reserve officials, who hinted at potential rate cuts if the U.S. economy begins to slow. In addition, geopolitical risks such as renewed U.S.–China trade tensions, instability in the Middle East, and slowing growth in China are all pushing investors toward safe-haven assets like gold. Another key driver is the ongoing accumulation of gold by central banks worldwide — particularly China and Turkey — highlighting gold’s growing appeal as a strategic reserve asset. Together, these factors have built a strong foundation for gold’s upward momentum, explaining why prices remain above yesterday’s opening level, despite the current short-term pullback.
From a technical and short-term outlook, gold (XAU/USD) continues to show a bullish setup supported by both price structure and market sentiment. On the H2 timeframe, gold remains in a clear uptrend, with a series of higher highs and higher lows. After breaking through a strong resistance zone around $3,374 (aligned with the 0.5 Fibonacci level), price surged to a peak of $3,403 before entering a healthy retracement phase.
Currently, the $3,367–$3,374 zone is acting as newly-formed support — a key confluence area that aligns with:
- A former resistance now flipped into support,
- The 0.5–0.618 Fibonacci retracement cluster,
- And a bullishly aligned short-term EMA structure.
In the short term, as long as this support zone holds, the bullish outlook remains valid. A successful retest of this area could reignite buying pressure, with the next target set around $3,423 — in line with the projected extension of the previous bullish leg.
However, if buyers fail to defend this zone, the bullish setup could be invalidated or lose momentum. This area warrants close monitoring of price action and volume behavior to confirm the next directional move.
Trade closed: target reached
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💹 Sharing premium signals & smart market insights daily
🚀 7–10 accurate signals/day (Gold, Forex, BTC)
📊 Technical analysis with a personal edge
✅ Join my free signal group: t.me/+E4ZNW3ZeXiQ1Y2M9
🚀 7–10 accurate signals/day (Gold, Forex, BTC)
📊 Technical analysis with a personal edge
✅ Join my free signal group: t.me/+E4ZNW3ZeXiQ1Y2M9
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.